Key Decisions in the Software Outsourcing Continuum

Mal Cullen, Head of the Americas and Eagle ACCESS℠

Do you need help identifying the key elements that lead to informed decisions on middle-office technology? Look no further. We break it down into three areas to consider when upgrading your technology solutions.

Installed Versus Private Cloud

Five years ago, 20% of Eagle’s new clients opted for Eagle ACCESS℠, our secure private cloud, as opposed to a traditional on-premise installation. By 2012, the numbers shifted completely: today more than 90% of new Eagle clients have chosen our private cloud services, and each year we see a number of existing client’s transition from on-premise to take advantage of Eagle ACCESS’ benefits. Why is this the case? A secure, private cloud hedges against costs such as investment in data centers, the training of internal staff and IT, and the cost of repairs and upgrades. It also helps firms utilize only the capacity that they need. However, cost-savings is only part of the picture. A leading hosted cloud provider will provide 24/7 support around both technology as well as operations to help clients focus on their business while the solution provider ensures the rest of their needs are addressed. A hosted provider will also keep information security and risk management controls current with evolving compliance standards.

 All or Nothing?
What was once a black or white choice between internal or external systems today has blurred to grey. Currently, there are more options available than ever before and providers like Eagle combined with BNY Mellon have broken down the previous barriers between software and outsourcing. More importantly, there are many intermediate steps along the technology continuum, such as co-sourcing, that implement a mix of services suited to a particular firm. Additionally, in recent years, variable cost models have come to dominate the use of technology services: firms have demanded elasticity in their cost structures.

Middle Office Outsourcing
The decision to outsource an entire middle office is significant. Comfort and trust in your business partner is critical. Likewise, an outsourcing partner’s awareness of a client’s culture is crucial. Often, firms wish to provide continued employment for all existing operational staff as well as a strategic alliance that allows flexibility for business expansion. They also want to mitigate business and operational risks, yet often have legacy technology that needs significant re-investment or conversion onto a new operating environment. In an outsourcing relationship, BNY Mellon provides data management, trade processing, investment book of records, reconciliation, custody and firm services. Further, combined with Eagle technology BNY Mellon can deliver significant operational efficiencies by providing one operating environment to a firm providing one view of all investment vehicles from a single accounting infrastructure and enable the firm to still own all of their data via an Eagle data hub.

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