Global sourcing offers asset managers a key lever to efficiently redesign their investment.

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

2. Global Sourcing 1.0: A Services Evolution Credit-Fueled Equity Markets Boom
Last decade’s 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 Offshore service centers: Thanks to “light
credit-fueled boom led to a dramatic expansion of touch” regulations for both marketing and dis-
products (i.e., hedge funds, OTC derivatives, tra- tributing funds, offshore service centers such as
ditional equities and private equity). Second, the Luxembourg and Ireland witnessed rapid growth.
creation of the EU and the subsequent UCITS2 Enabled by a well-developed set of laws that
legislation created additional momentum. And facilitate the creation and distribution of cross-
third, the material emergence of offshore service border funds,7 these locations evolved into
centers in Ireland and Luxembourg, thanks to mainstream investment destinations for both
“light touch” regulation, made it easier for firms private and retail funds. Regardless of national-
to transfer work to trusted third parties. ity, asset managers use these locations to launch
and distribute funds and tap into the global
Credit-fueled boom: Between 2003-2007, all capital pool.
asset classes and the various derivative instru-
ments registered two- to three-fold growth, The exponential growth in assets and complexity
thanks to demand pull fueled by loose monetary exposed and accentuated asset management
policy and cheap credit made widely available firms’ inefficient IT systems and internal
across markets. processes. It was the classic case of systems and
processes lagging growth. As a result, initial global
• The World Equity Market capitalization3
sourcing arrangements were spawned, primarily
increased by 160%, from $22.8 trillion to
$60.8 trillion (see Figure 1). to accomplish the following:
• Private equity assets under investment4 • Support systems integration, thanks to rapid
increased by 390%, from $79 billion to $308 consolidation in the industry.
billion. Private equity funds raised increased
by 540%, from $89 billion to $493 billion. • Upgrade and build on legacy systems. While
asset managers were becoming more regional
• OTC derivatives outstanding5 increased by and global in their outlook, their systems were
420%, from $142 billion to $598 billion. built for country-specific trading, distribution
• Hedge funds assets6 increased by 575%, from and reporting.
$150 billion to $860 billion.
• Address the growing pains in the middle
Creation of EU and UCITS legislation: This legisla- office. Middle-office systems were disparate,
tion promoted cross-border investing and the global and straight-through automation was non-
distribution of funds. A wave of M&As across the existent, thanks to multiple interfaces from
U.S. and Europe ensued, creating new asset man- custodians, brokers, investment managers and
agement firms of material scale and complexity. other third parties.
cognizant reports 2

3. While many asset managers handed over their This experience exposed the anomaly of cyclical
back-office operations, as well as pieces of their revenue and fixed cost structure, and asset
middle office,8 to investment services firms (see managers learned the tough lesson of focusing
Figure 2), a few also set up their own captive back- on cutting expenses, seeking efficiencies and
office operations with mixed success. With their variabilizing the cost structure.
proven expertise in back-office functions such
as custody and fund accounting, custodial banks The business priorities for asset managers are
became natural partners for asset managers to to remain competitive and look toward a more
outsource parts of their middle-office functions. realistic return on equity (RoE). The credit crunch
Over time, custodial banks invested in building and risk aversion have led to a more realistic
progressive platforms to support the middle- and assessment of what constitutes achievable
front-office needs of asset managers. With proven returns on equity. A recent survey, “Global Fund
capability, custodial banks are best positioned to Manager Survey, February 2011,” clearly highlights
ride the next wave of global sourcing vis-à-vis the somber mood of asset managers on the RoE
other service providers and delivery models.9 front.11 Of surveyed managers, 59% project an RoE
of less than 15% for the industry (see Figure 4).
Global Sourcing 2.0
On the cost-to-income parameter, 24% of asset
The next wave of middle- and front-office global
managers surveyed clearly see an opportunity
sourcing will be driven by market and regulatory
to bolster efficiency; meanwhile, 36% of asset
forces, complex products such as derivatives
managers believe their cost per head was higher
and asset managers’ need to focus on the hunt
than the industry average.
for alpha.
Global sourcing of investment operations offers
In the post-Lehman world, asset managers confront
asset managers the best levers available to vari-
a “new normal” — a tough growth environment,
abilize their fixed cost structures and drive cost
cost discipline, demand for more transparency,
efficiencies. Some examples of this include:
stringent regulations and scrutiny of complex
products such as derivatives. These forces provide Growth: In Europe, consolidation and the increase
the structural underpinnings for the next wave of in pan-European distribution patterns require
global sourcing investment operations. asset managers to streamline and improve opera-
tional effectiveness and efficiency throughout the
Thanks to the sharp global rally in equities since
front-, middle- and back-office. UCITS funds are
March 2009, many leading asset managers have
now distributed globally. This global expansion12
reported robust AUM numbers10 (see Figure 3).
drives the need for efficient investment opera-
While the AUM phenomenon is cyclical, the
tions, underscoring the need for a global sourcing
2008 cuts were deep, and the ensuing bleeding
partner.
nearly hemorrhaged many asset managers.
Investment Lifecycle Overview
Front Office Middle Office Back Office
Asset Transfer
Trade Execution Investment Operations Fund Accounting Global Custody
Management Agency
• Asset Gathering • Trade Order • Transaction Management • General Ledger • Safekeeping • Shareholder
• Research Management • OTC Derivatives Processing • Security Pricing Assets Servicing
• Portfolio • Order Execution • Data Management • NAV Calculation • Trade Settlement
Modeling • FIX Connectivity • Cash Administration • Reconciliation • Cast Availability
• Performance & Analytics • Daily, Monthly & • Failed Trade
Ad hoc Reporting Reporting
• Corporate Actions Processing
• Reconciliation
• Portfolio Recordkeeping &
Accounting • Income/
Tax Reclaims
• Reconciliation Processing
• Client Reporting
• Fee Billing
• Client Data Warehouse
Source: State Street
Figure 2
cognizant reports 3

4. 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
cognizant reports 4

5. 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
cognizant reports 5

6. providers like SEI and SS&C Technologies; and a specific function or a small set of services. This
many business process outsourcing companies cautious approach to global sourcing addresses
that have built advanced financial analysis and asset managers’ fear of losing control and helps
research capabilities. them take measured, calibrated steps in their
global sourcing mission.
Global Sourcing Deal Structures
While this model potentially offers a higher
Given ongoing trends, we see three kinds of
success rate with its calibrated approach, it suits
deal structures: The lift-out model, conver-
vendors that do not have a mature enterprise
sions and component-based solutions. While the
platform solution.
lift-out model and conversion arrangements are
prevalent, the component-based solution is a Global Sourcing Drivers and Concerns
nascent idea that is just now beginning to play
Asset managers view cost reduction as a necessary
out in the market.
but insufficient condition in the global sourcing
Lift-outs: In this arrangement, the global service decision calculus. Competition has ensured near-
provider takes over the entire operation, including homogenized service provider rate cards across
staff and IT platforms. While the asset manager the board, with little or no differentiation. While
realizes reduced fixed costs and a fraction cost reduction is a given, other factors such as
of variable costs, the service provider must service flexibility, service quality and access to
cautiously tread in dealing with staff, given the advanced technology will differentiate winning
human sensitivities involved. However, the benefit service providers.
for the service provider is the ready availability of
Asset managers are striving to variabilize their
an experienced group of human resources.
cost base, and 84% of asset managers in the
While technology is part of the lift-out deal, the survey rate flexibility (i.e., the ability of the service
systems that are ”lifted” are more often those providers to scale operations up or down) as a
that need to be reengineered into a single, very important driver.
efficient platform. With the potential for disparate
The key anecdotal concerns of asset managers
legacy systems across the industry, this effort will
include the following:
be material.
• Reputational risk: By restricting service
While this model is comprehensive in scope, it is providers to only the largest players, asset
highly complex to execute. managers seek to mitigate reputational risk.
This factor bestows on custodian banks a
Conversion: The conversion model may or may
formidable competitive advantage vis-à-vis
not take on any of the legacy applications or staff.
the competition.
To put it simply, the existing business is transferred
onto new/proprietary systems run by the service • Increasing complexity: While service
provider. Empirical evidence points to a maturing providers have proven capability to deliver
capability of service providers in building scalable services like custody, fund accounting, etc.,
yet flexible platforms that have materially reduced the same cannot be said of servicing complex
the transfer time. Today, deals of this nature are instruments such as derivatives.
typically completed in less than a year. • Custom requests: Most often with their stan-
dardized processes, systems and operating
The key to success lies in the service provider’s models, service providers tend to struggle to
understanding of business needs; moreover, an cope with custom requests.
effective conversion is underpinned by robust
and tested technology. • Price of standardization: Palpable pricing
conflicts are inevitable between service pro-
Component-based model: In this model, only viders with fully automated systems vs. those
select portions of the operations are outsourced without such systems. There is a tradeoff
over time. Component-based global sourcing is a between efficiency and flexibility that service
nascent phenomenon. It helps chart the middle providers must handle with utmost caution.
path for risk-averse asset managers who may not For instance, while the service provider with a
be comfortable parting with all their operations in slick enterprise system will score well on effi-
a block deal. This option fits in neatly with those ciency, it may well be criticized for its inability
asset managers who need third-party support for to process custom requests, eroding its pricing/
cognizant reports 6

7. bargaining power. And whereas the service functions such as funds marketing presentations;
provider that bundles basic systems with production of shareholder reports; sales support
layers of manual intervention will get knocked activities, such as RFP completion, replies to sales
for efficiency, it may still price the “manual queries and performance tracking; marketing
layers” — an inefficiency — for the sake of the strategy support, such as market size assessment
flexible capability to process custom requests. and new market entry strategy; and marketing
support, such as production of presentations,
• Perceived loss of control: Many asset
marketing brochures and editorial support.
managers report this as a key stumbling block,
despite an open mind about global sourcing.
Key Success Factors
There is a material need for service providers to
build tangible confidence-building measures to Global sourcing arrangements are like a marriage,
enable asset managers to cross the Rubicon. except that getting a divorce is harder. There are
lessons for both asset managers and service
• Benefits expectation mismatch: The “Global
providers to underpin rational decisions with
Fund Manager Survey” shows asset managers
reasonable expectations to make this relationship
realized cost savings of 20% vs. the expecta-
work. These include:
tion of 30%. We believe that cost savings of
30%-plus and material improvement in service • Be prepared for a long sales and negotiation
quality can only be realized over time — at least process.
over three years — with concerted effort.
• Do not underestimate the complexity of
The Next Frontier: Global Sourcing migration, whatever the deal structure.
Front-Office Operations • Key leadership stakeholder commitment,
As sell-side research dries up, asset managers engagement and sponsorship is vital.
are hard-pressed for adequate research to
• Define deliverables and metrics to assess
anchor investment decisions. While the larger service excellence, from day one.
fund houses continue to have in-house research
teams, the same cannot be said of smaller and • Be honest to set reasonable expectations on
the benefits of global sourcing.
medium-size asset managers. Also, hedge funds
have always relied on the research expertise and • Have a well-defined operational, risk and
experience of their senior partners for investment governance mechanism, from the beginning.
bets. However, senior partners are short on time
to comprehensively research themes and ideas
• Remember, cost benefits are a given. Asset
managers are looking for service providers
in-depth to support high-conviction trades. that can offer a high
degree of standardized yet Global sourcing
The time is ripe for asset managers to seriously
custom services. Flexibility
consider global sourcing as a key lever to plug
is the name of the game
arrangements are
gaps in their research needs at a fraction of the
and an attribute winners like a marriage,
cost. In this model, while the onshore seniors will
be responsible for securities selection, they will be
will share. except that getting a
better equipped to take investment calls with well- • Ensure that the individuals divorce is harder.
resourced support. Custody banks can shape and who are already familiar
lead this trend with their investment management with the business manage the transition. Invest
expertise, global footprint and ability to partner upfront to retain talent and ensure continuity.
with knowledge process outsourcing (KPO) firms
that have a proven niche in financial, market and • Invest in a consultative, partnership-based and
asset manager-centric business model focused
strategic research support capabilities.
on harnessing sustained success. Shed your
Today, service providers have mature capabili- world view — technology, custody or business
ties to offer offshore support for equity, credit, process services — and instead adopt the asset
quantitative, market and business research. Also, manager’s view of the world.
service providers have created scalable capa-
bilities to help the front office with marketing
Global Sourcing Outlook
strategy and support services. While global sourcing back-office functions such as
custody and fund accounting is a proven business
As sales and distribution is the second largest cost proposition, global sourcing of middle- and some
item, asset managers can look at global sourcing front-office functions are gaining traction. Today,
cognizant reports 7

8. 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
1
Sri Lankan-born American Raj Rajaratnam — the co-founder of New York-based hedge fund management
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

9. 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
11
“Outsourcing Opportunities and Strategies: Global Fund Manager Survey Report,” RBC Dexia
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
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