Global Middle Office Outsourcing Market, By Offering (Foreign Exchange and Trade Management, Portfolio Management, Investment Operations, Liquidity Management, Asset Class Servicing and Others), Deployment Model (Cloud, On Premises), End User (Investment Banking and Management Firms, Asset Management Companies, Stock Exchanges, Broker- Dealers, Banks and Others) – Industry Trends and Forecast to 2029.
Market Analysis and Size
Middle office outsourcing has gained immense popularity among enterprises for various benefits such as improved customer satisfaction and services, reduced overhead costs, and enhanced operational efficiency, among others.
Global Middle Office Outsourcing Market was valued at USD 6274.68 million in 2021 and is expected to reach USD 14048.58 million by 2029, registering a CAGR of 10.60% during the forecast period of 2022-2029. Investment Banking and Management Firms account for the largest end user segment in the respective market owing to the increasing demand for outsourcing of investment operations. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team also includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.
Market Definition
The middle office is the department in a financial services organization, investment bank, or hedge fund that lies in between the front and back office. It typically manages risk and calculates profits and losses. Middle office outsourcing refers to carrying out these middle office non-core functions with the help of a third party. Middle office outsourcing carries out a package of traditional middle-office functions, such as trade processing, reconciliations, corporate actions and investment accounting, with new data aggregation, storage and analytics services. Middle-office operations were outsourced for competitive advantage.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2022 to 2029
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Base Year
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2021
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Historic Years
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2020 (Customizable to 2019 - 2014)
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Quantitative Units
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Revenue in USD Million, Volumes in Units, Pricing in USD
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Segments Covered
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Offering (Foreign Exchange and Trade Management, Portfolio Management, Investment Operations, Liquidity Management, Asset Class Servicing and Others), Deployment Model (Cloud, On Premises), End User (Investment Banking and Management Firms, Asset Management Companies, Stock Exchanges, Broker- Dealers, Banks and Others)
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
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Market Players Covered
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Accenture (Ireland), BNP Paribas (France), JPMorgan Chase & Co. (India), SS&C Technologies, Inc. (US), Royal Bank of Canada (Canada), State Street Corporation (US), Citigroup Inc. (US), THE BANK OF NEW YORK MELLON CORPORATION (US), CACEIS (France), Apex Group Ltd. (US), Northern Trust Corporation (US), Linedata (France), Empaxis Data Management, Inc. (India), Indus Valley Partners. (India), BROWN BROTHERS HARRIMAN (US), and Genpact (US), among others
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Market Opportunities
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Middle Office Outsourcing Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:
Drivers
- Recent technological advancements
Enterprise session border controller manufacturers are constantly attempting to include new features for a better user experience, thanks to recent technology developments. This is likely to increase market demand for middle office outsourcing market.
- High Use of the Internet
The increase in the use of the Internet, along with adoption of new technologies such as Artificial intelligence, machine learning and others accelerate the market growth. The use of middle office outsourcing for reporting and billing, reconciliation, portfolio accounting, and staff augmentation assist in the expansion of the market.
- Digital Transformation
The surge in the digital transformation across enterprises accelerate the market growth. The rise in need for these services in investment banking and management firms, asset management companies, stock exchanges, broker- dealers, banks and others has a positive impact on the market.
Additionally, rapid urbanization, change in lifestyle, surge in investments and increased consumer spending positively impact the middle office outsourcing market.
Opportunities
Furthermore, emergence of big data analytics extends profitable opportunities to the market players in the forecast period of 2022 to 2029. Also, increasing digitization and automation of business processes will further expand the market.
Restraints/Challenges
On the other hand, delay in outsourcing process is expected to obstruct market growth. Also, lack of technical skills is projected to challenge the middle office outsourcing market in the forecast period of 2022-2029.
This middle office outsourcing market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on middle office outsourcing market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
COVID-19 Impact on Middle Office Outsourcing Market
The COVID-19 had a negative impact on middle office outsourcing market owing to the strict lockdowns and social distancing to contain the spread of the virus. The economic uncertainty, partial shutdown of the business and low consumer confidence impacted demand for middle office outsourcing services. The supply chain got hampered during the pandemic along with delay logistics activities. However, the middle office outsourcing market is expected to regain its pace during the post pandemic scenario due to the easing on the restrictions.
Recent Developments
- In February 2021, Northern Trust Corporation entered into a partnership with IHS Markit, a thinkFolio, multi-asset class investment management platform. Under this, the company integrated its middle office outsourcing platform with IHS’s thinkFolio to offer mutual institutional clients innovative solutions and services. This will help the company to serve better the customer's need in the market.
- In April 2020, BNP Paribas partnered with BlackRock to deliver integrated end-to-end investment management capabilities to mutual clients. Under this partnership, the company leverages BlackRock’s flagship investment operations platform to perform middle-office outsourced services with Aladdin’s Investment Book of Record as the trusted source of data. This partnership has helped the company to enhance its offerings and to grow in the market.
Global Middle Office Outsourcing Market Scope and Market Size
The middle office outsourcing market is segmented on the basis of offering, deployment model and end user. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Offering
- Foreign Exchange and Trade Management
- Portfolio Management
- Investment Operations
- Liquidity Management
- Asset Class Servicing
- Others
Deployment Model
- Cloud
- On Premises
End User
- Investment Banking and Management Firms
- Asset Management Companies
- Stock Exchanges
- Broker- Dealers
- Banks
- Others
Middle Office Outsourcing Market Regional Analysis/Insights
The middle office outsourcing market is analyzed and market size insights and trends are provided by country, offering, deployment model and end user as referred above.
The countries covered in the middle office outsourcing market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America dominates the middle office outsourcing market due to the presence of asset management providers and growing adoption of technological innovations in middle office outsourcing.
Asia-Pacific (APAC) is expected to witness significant growth during the forecast period of 2022 to 2029 because of the presence of large number of middle office outsourcings suppliers and providers and increasing adoption of automation for business processes.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Middle Office Outsourcing Market
The middle office outsourcing market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to middle office outsourcing market.
Some of the major players operating in the middle office outsourcing market are
- Accenture (Ireland)
- BNP Paribas (France)
- JPMorgan Chase & Co. (India)
- SS&C Technologies, Inc. (US)
- Royal Bank of Canada (Canada)
- State Street Corporation (US)
- Citigroup Inc. (US)
- THE BANK OF NEW YORK MELLON CORPORATION (US)
- CACEIS (France)
- Apex Group Ltd. (US)
- Northern Trust Corporation (US)
- Linedata (France)
- Empaxis Data Management, Inc. (India)
- Indus Valley Partners. (India)
- BROWN BROTHERS HARRIMAN (US)
- Genpact (US)
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