Cognizant Reports
Global Trends in Investment
Operations Sourcing
Executive Summary
The Titanic disaster, in which 1,500 people perished,
resulted in a change to maritime rules, ensuring a
lifeboat seat for every passenger. Extraordinary
events beget extraordinary responses. Similarly,
the U.S. financial services industry hit the integrity
iceberg during the 2008 market implosion that
claimed the lives of many firms and bled the
markets and economy, as well.
With the global financial market meltdown seared
indelibly into asset managers memories, the hope
is that lessons learned from combating this once-
in-a-lifetime crisis will be put to good use. The
conditions across the investment management
landscape make it ripe for structural changes
within the investment operation function the
fulcrum on which investment management is
based. Global sourcing offers asset managers a
key lever to efficiently redesign their investment
operations front-, middle- and back-office to
bolster their long-run competitive advantage.
Global sourcing offers the lifeboat that asset
managers need to:
Address the issues of trust and trans-
parency that regulators and institutional
investors demand. Integrity, the non-negotia-
ble asset, is a major challenge these days for
asset managers, as well as other players in
the financial services business. On the heels
of Bernard Madoffs $50 billion Ponzi scheme,
cognizant reports | may 2011
the Rajaratnam scandal1 reopened the wounds
of investor mistrust. With regulators calling for
greater transparency and governance, asset
managers are reexamining how pricing, audit-
ing and accounting functions are performed.
Bolster cost and operational efficiency and
effectiveness. Asset managers across the
board have learned how to variabilize their
cost structures, following the Great Recession,
a long-tailed event that exposed the fault lines
of carrying high fixed costs when assets under
management (AUM) vaporize.
Manage complexity. Institutional investors
demand the engagement of reputable third
parties to value complex or non-liquid assets,
such as over-the-counter derivatives.
The sharp rally of equity prices since March 2009
(which has boosted assets under management)
is unlikely to breed complacency or blunt asset
managers resolve to redraw the structural
contours of investment operations. Instead, asset
managers are best positioned to initiate strategic
change programs to address the long-term com-
petitive needs of their firms.
To win in the new industry order, asset managers
should use the current benign market conditions
to partner with reputable service providers and
initiate strategic global sourcing programs to
anchor their institutions on a sustainable growth
path with reliable and efficient operating models.
Global Sourcing 1.0: A Services Evolution Credit-Fueled Equity Markets Boom
Last decades initial wave of global sourcing
investment operations was driven by three
$ trillion
factors: 70
60.8
Capacity crunch fueled by rapid growth. 60
50.7
IT platform integration driven by consolidation. 50
40.9
Legacy systems upgrades to support global 40
31.0 30.6
36.8

reach. 30 26.6
22.8
20
To comprehend the evolution of global sourcing
10
in investment operations, it is pertinent to under-
0
stand the investment landscape at the turn of 2000 2001 2002 2003 2004 2005 2006 2007
the century. The 2000-2010 time period can be
World Equity Market Capitalization
divided into three parts:
1. The recession following the dot.com bust
(2000-2002).
Source: World Federation of Exchanges,
2. The credit-fueled boom (2003-2007). 2008 Market Highlights
3. The Great Recession (Dec. 2007-June 2009). Figure 1

These factors laid the foundation for the first wave

of investment operations global sourcing. First, the
credit-fueled boom led to a dramatic expansion of
products (i.e., hedge funds, OTC derivatives, tra-
ditional equities and private equity). Second, the
creation of the EU and the subsequent UCITS2
legislation created additional momentum. And
third, the material emergence of offshore service
centers in Ireland and Luxembourg, thanks to
light touch regulation, made it easier for firms
to transfer work to trusted third parties.
Credit-fueled boom: Between 2003-2007, all
asset classes and the various derivative instru-
ments registered two- to three-fold growth,
thanks to demand pull fueled by loose monetary
policy and cheap credit made widely available
across markets.
The World Equity Market capitalization3
increased by 160%, from $22.8 trillion to
$60.8 trillion (see Figure 1).
Offshore service centers: Thanks to light
touch regulations for both marketing and dis-
tributing funds, offshore service centers such as
Luxembourg and Ireland witnessed rapid growth.
Enabled by a well-developed set of laws that
facilitate the creation and distribution of cross-
border funds,7 these locations evolved into
mainstream investment destinations for both
private and retail funds. Regardless of national-
ity, asset managers use these locations to launch
and distribute funds and tap into the global
capital pool.
The exponential growth in assets and complexity
exposed and accentuated asset management
firms inefficient IT systems and internal
processes. It was the classic case of systems and
processes lagging growth. As a result, initial global
sourcing arrangements were spawned, primarily
to accomplish the following:

Private equity assets under investment4
increased by 390%, from $79 billion to $308
billion. Private equity funds raised increased
by 540%, from $89 billion to $493 billion.
OTC derivatives outstanding5 increased by
420%, from $142 billion to $598 billion.
Hedge funds assets 6
increased by 575%, from
$150 billion to $860 billion.
Creation of EU and UCITS legislation: This legisla-
tion promoted cross-border investing and the global
distribution of funds. A wave of M&As across the
U.S. and Europe ensued, creating new asset man-
agement firms of material scale and complexity.
Support systems integration, thanks to rapid
consolidation in the industry.
Upgrade and build on legacy systems. While
asset managers were becoming more regional
and global in their outlook, their systems were
built for country-specific trading, distribution
and reporting.
Address the growing pains in the middle
office. Middle-office systems were disparate,
and straight-through automation was non-
existent, thanks to multiple interfaces from
custodians, brokers, investment managers and
other third parties.

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While many asset managers handed over their
back-office operations, as well as pieces of their
middle office,8 to investment services firms (see
Figure 2), a few also set up their own captive back-
office operations with mixed success. With their
proven expertise in back-office functions such
as custody and fund accounting, custodial banks
became natural partners for asset managers to
outsource parts of their middle-office functions.
Over time, custodial banks invested in building
progressive platforms to support the middle- and
front-office needs of asset managers. With proven
capability, custodial banks are best positioned to
ride the next wave of global sourcing vis--vis
other service providers and delivery models.9
Global Sourcing 2.0
The next wave of middle- and front-office global
sourcing will be driven by market and regulatory
forces, complex products such as derivatives
and asset managers need to focus on the hunt
for alpha.
In the post-Lehman world, asset managers confront
a new normal a tough growth environment,
cost discipline, demand for more transparency,
stringent regulations and scrutiny of complex
products such as derivatives. These forces provide
the structural underpinnings for the next wave of
global sourcing investment operations.
Thanks to the sharp global rally in equities since
March 2009, many leading asset managers have
reported robust AUM numbers10 (see Figure 3).
While the AUM phenomenon is cyclical, the
2008 cuts were deep, and the ensuing bleeding
nearly hemorrhaged many asset managers.
Investment Lifecycle Overview
Front Office Middle Office
Asset
Trade Execution Investment Operations
Management
Asset Gathering Trade Order Transaction Management
Research Management OTC Derivatives Processing
Portfolio Order Execution Data Management
Modeling FIX Connectivity Cash Administration
Performance & Analytics
Corporate Actions Processing
Portfolio Recordkeeping &
Accounting
Reconciliation Processing
Client Reporting
Fee Billing
Client Data Warehouse
Source: State Street
Figure 2
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This experience exposed the anomaly of cyclical
revenue and fixed cost structure, and asset
managers learned the tough lesson of focusing
on cutting expenses, seeking efficiencies and
variabilizing the cost structure.
The business priorities for asset managers are
to remain competitive and look toward a more
realistic return on equity (RoE). The credit crunch
and risk aversion have led to a more realistic
assessment of what constitutes achievable
returns on equity. A recent survey, Global Fund
Manager Survey, February 2011, clearly highlights
the somber mood of asset managers on the RoE
front.11 Of surveyed managers, 59% project an RoE
of less than 15% for the industry (see Figure 4).
On the cost-to-income parameter, 24% of asset
managers surveyed clearly see an opportunity
to bolster efficiency; meanwhile, 36% of asset
managers believe their cost per head was higher
than the industry average.
Global sourcing of investment operations offers
asset managers the best levers available to vari-
abilize their fixed cost structures and drive cost
efficiencies. Some examples of this include:
Growth: In Europe, consolidation and the increase
in pan-European distribution patterns require
asset managers to streamline and improve opera-
tional effectiveness and efficiency throughout the
front-, middle- and back-office. UCITS funds are
now distributed globally. This global expansion12
drives the need for efficient investment opera-
tions, underscoring the need for a global sourcing
partner.
Back Office
Transfer
Fund Accounting Global Custody
Agency
General Ledger Safekeeping Shareholder
Security Pricing Assets Servicing
NAV Calculation Trade Settlement
Reconciliation Cast Availability
Daily, Monthly & Failed Trade
Ad hoc Reporting Reporting
Reconciliation
Income/
Tax Reclaims
3
Assets Under Management
T. Rowe
Federated Bank of Janus State
Asset Price Franklin Eaton
Investors BlackRock New York Invesco Capital Street
Management Group Resources Vance
Inc. (Dec. 31) Mellon (Dec. 31) Group Corp.
Firms (TROW) (March 31) (Oct. 31)
(Dec. 31) (Dec. 31) (Dec. 31) (Dec. 31)
(Dec. 31)
AUM (in $bn) 3,34.7 491.6 237.4 1,124 128.6 142 482 167.7 1,700
2006 RoE 21.80% 19% 37.40% 3% 32.20% 26% 11.50% 5.80% 16.20%
OM* 43.25% 31.50% 22.49% 30% 32% 23.40% 25.53% 28.57%
AUM (in $bn) 400 576 301.6 1,356 160 1,121 529.3 206.7 1,900
2007 RoE 24.10% 24.20% 37.90% 8.60% 62.30% 6.90% 10.20% 6.70% 13.40%
OM 44.83% 34.00% 31.68% 30.68% 32% 32.38% 25.60% 31.27% 32.40%
AUM (in $bn) 276.3 591.1 407.3 1,307 123 928 377.1 123.5 1,400
2008 RoE 19.70% 22.50% 53% 6.50% 81.50% 5.60% 8.50% 8.50% 14.80%
OM 40.23% 35.13% 29.52% 32.84% 33% 19.38% 22.60% 32.12% 32.39%
AUM (in $bn) 391.3 421 389.3 3,346 154.9 1,115 459.5 159.7 1,900
2009 RoE 15% 11.70% 37.40% 3.60% 37.50% -3.70% 4.70% -75.60% 13.20%
OM 37.72% 29.70% 29.75% 32.20% 26% -24% 18.40% -79.83% 33.26%
AUM (in $bn) 482 586.8 358.2 3,560 185.2 1,172 616.5 169.5 2,000
2010 RoE 20.40% 18.70% 36.40% 7.90% 42.50% 7.80% 5.60% 13.60% 9.50%
OM 44.56% 33.74% 31.69% 36.74% 31% 27.85% 16.90% 27.72% 26.11%
*Operating margin
Source: Cognizant Research Center Analysis
Figure 3

In the U.S., the trend to become global, both in operations infrastructure has not kept pace and
scope of business and distribution of funds, lags the market. This gap can be addressed by
is more pronounced. Today, the U.S. asset global sourcing arrangements.
management landscape is more complex, encom-
passing non-U.S. subsidiaries and a global range The ability to manage complex instruments:
of assets and investor base. The advantage in Surging OTC derivatives trade volumes14 add
global sourcing for U.S. asset managers lies in stress to legacy systems designed to process
finding a partner to help them scale and reach traditional equity and fixed income products. In
new markets and investors to support their global many asset management firms, these legacy
objectives. systems are adapted to handle nontradition-
al trades, thereby heightening operational
Unlike Europe, Asia is a large, fragmented market- risks. Global service providers have built scal-
place, and there is no pan-Asian regulation to drive able global platforms to fulfill the unique needs
an open market. In such a market, offshore fund of derivative transactions. From valuing complex
structures present the easiest way to distribute
funds quickly across the region. Asian asset Fund Manager Targeted Equity Returns
managers have realized that gaining a pan-Asian
footprint fast is best achieved by partnering with
<10% 14%
global investment servicing providers.
10% - 15% 45%
Sovereign wealth funds: While traditional asset
managers continue to globally source services, 16% - 20% 14%
entities such as sovereign wealth funds (SWFs) are
>20% 17%
actively exploring global sourcing opportunities.
Not sure,
No answer 10%
Today, SWFs have $4.3 trillion of assets under
management.13 Thanks to the commodities and 0 10% 20% 30% 40% 50%
natural resources price boom, AUMs have grown
at a fast clip over the last five years. While the Source: Global Fund Manager Survey, February 2011
capital pool has expanded quickly, the IT and Figure 4

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Investment Operations Outsourcing Services

Trade Data Record Corporate Risk Recon- Post-trade Reporting &

Front Office Back Office
Services Management Keeping Actions Management cilliation Compliance Analysis

Asset gathering Trade Security Institutional Voluntary and VaR Custodian Event-driven Daily, Custody
confirmation master involuntary modeling and monitoring monthly,
Client servicing Private client Unit value
Trade
file processing Operational
third-party Regulatory
ad hoc
accounting
Market Managed management management
settlement Pricing data Event control reporting (i.e., daily
research and accounts reporting
monitoring Cash, position, NAVs, etc.)
information Trade Reference
Income/tax
Process and Exception
and transaction
management notification data Reference audit review management Client reporting Transfer agency
reclaims reconciliations
Strategy Custodian links
data update Collateral
system Performance
Cash Claims review measurement
management management
Broker links management and analytics
Pre-trade
Cash
compliance forecasting
Trade order
management
Trade execution

Source: EMC Corp.

Figure 5

derivatives, to handling associated needs (such Unlike more commoditized back-office functions
as collateral management, data integration and such as custody and fund accounting, global
reporting), larger global service providers today sourcing of middle-office operations is not a cost
offer these services in a variety of operating race to the bottom. According to the Beacon
models. Consulting Group survey, three service priorities
are speed, accuracy and cost
Institutional investors demand involvement of (see Figure 6). Eighty-six Global service
third parties when it comes to valuations of percent of respondents said providers have built
complex or nonliquid assets, such as OTC deriva- accuracy is the most important
tives. This further adds heft to the global sourcing factor, while only 12% said cost
scalable global
argument. As pressure on asset managers grows, was important. In fact, 50% of platforms to fulfill
the valuation process is shifting to independent respondents clearly said that the unique needs
third parties to avoid conflicts of interest. cost was not an important
factor at all when it comes to
of derivative
Madoff fraud: The resultant call for greater
transparency and governance is forcing asset middle-office outsourcing. transactions.
managers to reexamine how pricing, auditing
To address these factors, major global services
and accounting functions are performed. Globally
providers such as State Street, Northern Trust,
sourcing these services can help asset managers
BNY Mellon and JP Morgan are today joined
score on transparency and cost efficiency goals.
by niche service providers, such as Citi, for
Key Global Sourcing Trends hedge funds; established technology solutions

The global sourcing market continues to Top Priority: Accuracy

be dominated by custodial banks, but many
technology and business process service Q: Based on expectations of a service provider, rank accuracy,
speed and low cost in order of importance.
providers are challenging the status quo with
100
niche platform-based service offerings.
86%

In this dynamic market, we see increasing 75

competition to the custodial banks from both 55%

50%
50
technology and business process global sourcing 43%
38%
services providers. Both competitors are striving
25
to capture the maximum share of the investment
12%
operations value curve15 (see Figure 5). 7% 7%
2%
0
According to a Beacon Consulting Group survey,16 Accuracy Speed Low Cost

67% of fund managers have completed a formal Most Important Somewhat Important Not as Important

review of their middle-office operations in the last Source: Middle Office Survey Results,
year to identify cost savings opportunities and Beacon Consulting Group
improve service quality. Figure 6

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providers like SEI and SS&C Technologies; and
many business process outsourcing companies
that have built advanced financial analysis and
research capabilities.
Global Sourcing Deal Structures
Given ongoing trends, we see three kinds of
deal structures: The lift-out model, conver-
sions and component-based solutions. While the
lift-out model and conversion arrangements are
prevalent, the component-based solution is a
nascent idea that is just now beginning to play
out in the market.
Lift-outs: In this arrangement, the global service
provider takes over the entire operation, including
staff and IT platforms. While the asset manager
realizes reduced fixed costs and a fraction
of variable costs, the service provider must
cautiously tread in dealing with staff, given the
human sensitivities involved. However, the benefit
for the service provider is the ready availability of
an experienced group of human resources.
While technology is part of the lift-out deal, the
systems that are lifted are more often those
that need to be reengineered into a single,
efficient platform. With the potential for disparate
legacy systems across the industry, this effort will
be material.
While this model is comprehensive in scope, it is
highly complex to execute.
Conversion: The conversion model may or may
not take on any of the legacy applications or staff.
To put it simply, the existing business is transferred
onto new/proprietary systems run by the service
provider. Empirical evidence points to a maturing
capability of service providers in building scalable
yet flexible platforms that have materially reduced
the transfer time. Today, deals of this nature are
typically completed in less than a year.
The key to success lies in the service providers
understanding of business needs; moreover, an
effective conversion is underpinned by robust
and tested technology.
Component-based model: In this model, only
select portions of the operations are outsourced
over time. Component-based global sourcing is a
nascent phenomenon. It helps chart the middle
path for risk-averse asset managers who may not
be comfortable parting with all their operations in
a block deal. This option fits in neatly with those
asset managers who need third-party support for
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a specific function or a small set of services. This
cautious approach to global sourcing addresses
asset managers fear of losing control and helps
them take measured, calibrated steps in their
global sourcing mission.
While this model potentially offers a higher
success rate with its calibrated approach, it suits
vendors that do not have a mature enterprise
platform solution.
Global Sourcing Drivers and Concerns
Asset managers view cost reduction as a necessary
but insufficient condition in the global sourcing
decision calculus. Competition has ensured near-
homogenized service provider rate cards across
the board, with little or no differentiation. While
cost reduction is a given, other factors such as
service flexibility, service quality and access to
advanced technology will differentiate winning
service providers.
Asset managers are striving to variabilize their
cost base, and 84% of asset managers in the
survey rate flexibility (i.e., the ability of the service
providers to scale operations up or down) as a
very important driver.
The key anecdotal concerns of asset managers
include the following:
Reputational risk: By restricting service
providers to only the largest players, asset
managers seek to mitigate reputational risk.
This factor bestows on custodian banks a
formidable competitive advantage vis--vis
the competition.
Increasing complexity: While service
providers have proven capability to deliver
services like custody, fund accounting, etc.,
the same cannot be said of servicing complex
instruments such as derivatives.
Custom requests: Most often with their stan-
dardized processes, systems and operating
models, service providers tend to struggle to
cope with custom requests.
Price of standardization: Palpable pricing
conflicts are inevitable between service pro-
viders with fully automated systems vs. those
without such systems. There is a tradeoff
between efficiency and flexibility that service
providers must handle with utmost caution.
For instance, while the service provider with a
slick enterprise system will score well on effi-
ciency, it may well be criticized for its inability
to process custom requests, eroding its pricing/
6
 bargaining power. And whereas the service
provider that bundles basic systems with
layers of manual intervention will get knocked
for efficiency, it may still price the manual
layers an inefficiency for the sake of the
flexible capability to process custom requests.
Perceived loss of control: Many asset
managers report this as a key stumbling block,
despite an open mind about global sourcing.
There is a material need for service providers to
build tangible confidence-building measures to
enable asset managers to cross the Rubicon.
Benefits expectation mismatch: The Global
Fund Manager Survey shows asset managers
realized cost savings of 20% vs. the expecta-
tion of 30%. We believe that cost savings of
30%-plus and material improvement in service
quality can only be realized over time at least
over three years with concerted effort.
The Next Frontier: Global Sourcing
Front-Office Operations
As sell-side research dries up, asset managers
are hard-pressed for adequate research to
anchor investment decisions. While the larger
fund houses continue to have in-house research
teams, the same cannot be said of smaller and
medium-size asset managers. Also, hedge funds
have always relied on the research expertise and
experience of their senior partners for investment
bets. However, senior partners are short on time
to comprehensively research themes and ideas
in-depth to support high-conviction trades.
The time is ripe for asset managers to seriously
consider global sourcing as a key lever to plug
gaps in their research needs at a fraction of the
cost. In this model, while the onshore seniors will
be responsible for securities selection, they will be
better equipped to take investment calls with well-
resourced support. Custody banks can shape and
lead this trend with their investment management
expertise, global footprint and ability to partner
with knowledge process outsourcing (KPO) firms
that have a proven niche in financial, market and
strategic research support capabilities.
Today, service providers have mature capabili-
ties to offer offshore support for equity, credit,
quantitative, market and business research. Also,
service providers have created scalable capa-
bilities to help the front office with marketing
strategy and support services.
As sales and distribution is the second largest cost
item, asset managers can look at global sourcing
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functions such as funds marketing presentations;
production of shareholder reports; sales support
activities, such as RFP completion, replies to sales
queries and performance tracking; marketing
strategy support, such as market size assessment
and new market entry strategy; and marketing
support, such as production of presentations,
marketing brochures and editorial support.
Key Success Factors
Global sourcing arrangements are like a marriage,
except that getting a divorce is harder. There are
lessons for both asset managers and service
providers to underpin rational decisions with
reasonable expectations to make this relationship
work. These include:
Be prepared for a long sales and negotiation
process.
Do not underestimate the complexity of
migration, whatever the deal structure.
Key leadership stakeholder commitment,
engagement and sponsorship is vital.
Define deliverables and metrics to assess
service excellence, from day one.
Be honest to set reasonable expectations on
the benefits of global sourcing.
Have a well-defined operational, risk and
governance mechanism, from the beginning.
Remember, cost benefits are a given. Asset
managers are looking for service providers
that can offer a high
degree of standardized yet Global sourcing
custom services. Flexibility
is the name of the game
arrangements are
and an attribute winners like a marriage,
will share. except that getting a
Ensure that the individuals divorce is harder.
who are already familiar
with the business manage the transition. Invest
upfront to retain talent and ensure continuity.
Invest in a consultative, partnership-based and
asset manager-centric business model focused
on harnessing sustained success. Shed your
world view technology, custody or business
process services and instead adopt the asset
managers view of the world.
Global Sourcing Outlook
While global sourcing back-office functions such as
custody and fund accounting is a proven business
proposition, global sourcing of middle- and some
front-office functions are gaining traction. Today,
7
Value Chain of Fund Management vs. Outsourcing and Offshoring

70%

Back Office
60% IT services

% outsourced / offshored IT infrastructure Middle Office

50% IT services
IT infrastructure
Front Office
Fund accounting
Custody Customer Service
40% Finance operations
Investment operations Customer Service
Procurement Reconcilliation
Trade matching
settlement Fund accounting HR operations
30% Procurement Finance operations Organizational structure
Trade matching Legal Reconcilliation
Custody settlement Marketing Research
Investment operations
HR operations
Legal Research
20%
Organizational Marketing Risk management
structure
Risk management
10%
Stage of operation
Outsourcing Offshoring

Source: Global Fund Manager Survey, February 2011

Figure 7

we see a clearly defined set of services that are providing checks-and-balances to the asset
appropriate and ready-made for global sourcing manager. The Madoff and Rajaratnam scandals
across the front-, middle- and back offices (see have underscored the need and the benefits of
Figure 7). Increasing service provider maturity, using a third-party for investment operations.
technology sophistication, regulatory scrutiny and Additionally, the use of a third-party, independent
the asset managers hunt for alpha and efficiency entity to value assets helps to bridge the trust
will constantly push and widen the perimeter of deficit gap.
outsource-able functions across the investment
operations value curve. Global sourcing offers asset managers a strategic
lever to drive greater efficiency, enhance transpar-
Regulators, boards, institutional and retail ency to redeem lost trust and lay the foundation
investors want to see strong, reputable firms for future growth and success.

Footnotes
Sri Lankan-born American Raj Rajaratnam the co-founder of New York-based hedge fund management
1

firm Galleon Group was arrested by the FBI in October 2009 on charges of earning about $45 million
through insider trading in shares of several public traded companies, including IBM, Intel and Google.
Rajaratnam was found guilty in May 2011 on all 14 counts against him.
2
Undertakings for Collective Investment in Transferable Securities (UCITS) legislation led to free
marketing of investment funds across the European Union once registered in one EU member
country.
3
World Federation of Exchanges, Market Highlights.
4
TheCityUK estimates based on PEREP Analytics, Thomson Reuters, European Private Equity & Venture
Capital Association (EVCA), PricewaterhouseCoopers and Asian Venture Capital Journal data.
5
Bank for International Settlements
6
International Financial Services London estimates.
7
Lipper Hindsight and PwC analysis, Dec. 31, 2010.

cognizant reports 8
8
State Street
9
Custody Business in the New Normal: Advantage Custodians, Cognizant Research Center, December
2010, http://www.cognizant.com/InsightsWhitepapers/Custody-Business-in-New-Normal.pdf
10
Cognizant Research Center Analysis
Outsourcing Opportunities and Strategies: Global Fund Manager Survey Report, RBC Dexia
11

Investor Services, Accenture, February 2011, http://ic.rbcdexia.com/2011/02/outsourcing-opportu-

nities-and-strategies/?utm_source=ptarmigan&utm_medium=adwordsen&utm_content=05&utm_
campaign=outsourcingfeb11
12
Lipper Hindsight and PwC analysis, Dec. 31, 2010.
13
TheCityUK estimates.
14
Bank for International Settlements
15
Strategic Considerations for Investment-Management Outsourcing, EMC Corp.,
http://www.emc.com/collateral/emc-perspective/h6817-investment-mgmt-outsourcing-ep.pdf
16
Middle Office Survey, Beacon Consulting Group, March 2009,
http://beaconcgi.com/news/beacon-consulting-group-releases-middle-office-survey-results

Author
Anand Chandramouli
Cognizant Research Center
anand.chandramouli@cognizant.com

About Cognizant

Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out-
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