Outsourcing data management provides advisors little capacity to manage alternatives in-house with one potential solution. Yet, while time- and resource-strapped firms may benefit in some ways from outsourcing to a third party, there are still some challenges, according to eight in 10 respondents.
“Firms generally want control and ownership of their data so they have oversight, they’re informed, and they can easily share information with clients,” Loughrey says. Yet advisors at times appear to have a hard time achieving these goals: Nearly one in five respondents (18%) reported a lack of control or access to documents when outsourcing. And about a third said that timeliness of reporting, data transparency, data quality and accuracy, and rising or unreasonable costs were an issue.
