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Dec, 12 2023

The Strategic Impact of Middle Office Outsourcing for Efficient Operations, Cost Savings, and Business Excellence

Middle office outsourcing is crucial for businesses, offering cost efficiency, access to specialized expertise, and a focus on core competencies. It enables scalability and flexibility, allowing companies to adapt to changing demands and market conditions. Outsourcing enhances risk management and regulatory compliance, leveraging advanced technologies for improved efficiency and accuracy. The integration of secure technology infrastructure ensures data confidentiality. Overall, middle office outsourcing optimizes operations, reduces costs, and empowers businesses to concentrate on strategic growth.

According to Data Bridge Market Research analyses the Global Middle Office Outsourcing Market was valued at USD 6,274.68 million in 2021 and is expected to reach USD 14,048.58 million by 2029, registering a CAGR of 10.60% during the forecast period of 2022-2029.  

"Increased internet usage boosts the market growth"

The widespread use of the internet acts as a key driver for the middle office outsourcing market growth. It enables efficient global communication and collaboration between businesses and outsourcing partners, ensuring timely data exchange for functions such as reporting and billing. The internet's global reach allows companies to access specialized expertise and cost advantages from providers worldwide. It serves as a foundation for integrating advanced technologies such as AI and machine learning, enhancing the accuracy and efficiency of middle-office tasks. The remote working capabilities facilitated by the internet are crucial for staff augmentation, enabling access to a global talent pool.

What restraints the growth of the global middle office outsourcing market?

“Lack of technical skills hinders the market growth”

The projected lack of technical skills poses a significant restraint for the middle office outsourcing market (2022-2029). This shortage hampers the industry's ability to manage complex operations, adopt emerging technologies, and deliver high-quality services. It may impede scalability, introduce cybersecurity risks, and hinder the timely adaptation to industry trends. In a globally competitive landscape, regions or providers lacking technical expertise may face challenges in remaining competitive.

Segmentation: Global Middle Office Outsourcing Market

The global middle office outsourcing market is segmented on the basis of offering, deployment model, and end-user. 

  • On the basis of offering, the global middle office outsourcing market is segmented into foreign exchange and trade management, portfolio management, investment operations, liquidity management, asset class servicing, and others
  • On the basis of deployment model, the global middle office outsourcing market is segmented into cloud, and on premises
  • On the basis of end-user, the global middle office outsourcing market is segmented into investment banking and management firms, asset management companies, stock exchanges, broker- dealers, banks, and others

Regional Insights: North America dominates the Global Middle Office Outsourcing Market

North America dominates the middle office outsourcing market due to its concentration of asset management providers, advanced technology adoption, and a mature financial industry. The region's stringent regulatory compliance, skilled workforce, and infrastructure further enhance its dominance in providing efficient and secure outsourcing services, making North America a key player in the middle office outsourcing landscape.

The Asia-Pacific (APAC) region is expected to experience significant growth during the forecast period (2022 to 2029). This growth is driven by the presence of numerous outsourcing providers offering cost-effective solutions, a skilled workforce, advanced technology infrastructure, and increasing automation adoption. Businesses are drawn to APAC for streamlined operations, cost efficiency, and expertise in regulatory compliance and risk management, making it a key player in the global middle office outsourcing landscape.

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Recent Developments in the Global Middle Office Outsourcing Market

  • In February 2021, Northern Trust Corporation formed a strategic alliance with IHS Markit's thinkFolio, a multi-asset class investment management platform. By integrating its middle office outsourcing platform with thinkFolio, Northern Trust aims to provide innovative solutions and services to mutual institutional clients, enhancing its ability to meet customer needs effectively
  • In April 2020, BNP Paribas collaborated with BlackRock to offer integrated end-to-end investment management capabilities to shared clients. This partnership utilizes BlackRock's flagship investment operations platform, leveraging Aladdin's Investment Book of Record as the primary data source for middle-office outsourced services. This collaborative effort has enabled BNP Paribas to enhance its service offerings and expand its presence in the market

The Prominent Key Players Operating in the Global Middle Office Outsourcing Market Include:

  • Accenture (Ireland)
  • BNP Paribas (France)
  • JPMorgan Chase & Co. (India)
  • SS&C Technologies, Inc. (U.S.)
  • Royal Bank of Canada (Canada)
  • State Street Corporation (U.S.)
  • Citigroup Inc. (U.S.)
  • CACEIS (France)
  • Apex Group Ltd. (U.S.)
  • Northern Trust Corporation (U.S.)
  • Linedata (France)
  • Empaxis Data Management, Inc. (India)
  • Indus Valley Partners. (India)
  • Genpact (U.S.)

Above are the key players covered in the report, to know about more and exhaustive list of global middle office outsourcing market companies contact,

Research Methodology: Global Middle Office Outsourcing Market

Data collection and base year analysis are done using data collection modules with large sample sizes. The market data is analyzed and estimated using market statistical and coherent models. In addition, market share analysis and key trend analysis are the major success factors in the market report. The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market, and primary (industry expert) validation. Apart from this, data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Company Market Share Analysis, Standards of Measurement, global vs Regional and Vendor Share Analysis. Please request analyst call in case of further inquiry.

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