ECONOMIC AND GEOPOLITICAL RISKS BOOST OUTSOURCING AS FIRMS LOOK TO SPECIALISTS TO HELP NAVIGATE THE CURRENT ENVIRONMENT

• 60% of major firms will outsource more operations and nearly half will increase investment in their business over the next 18 months
• Ocorian research shows banks are believed to be the sector most positively affected by the results of recent elections

Economic and geopolitical risks are boosting outsourcing and prompting companies to widen their investment focus, new global research* from Ocorian, the specialist global provider of services to financial institutions, asset managers, corporates and high net worth individuals shows.

More than half (52%) of major companies, asset managers working in alternative investments, family offices and wealth managers questioned in the study say they have already increased their areas of focus for investments to mitigate economic and geopolitical risks while nearly half (49%) say they have outsourced more to third parties to benefit from experts who have the knowledge and scale to deal with the ever changing landscape.

The research across the European Union, UK, US, Canada, South Africa, Asia and the Middle East which also included senior executives at capital markets companies and professional services providers found 60% plan to increase outsourcing more generally over the next 18 months. Whilst around half (48%) say they plan to increase investment in their businesses over the period with a third (34%) planning to increase M&A activity and 23% planning to diversify into new geographies or sectors.

The study sounded a note of caution with 26% planning to decrease their levels of investment and M&A activities, showing that sentiment is still divided amongst firms.

Senior executives at major companies and asset managers working in alternative investments believe the banking sector will be most positively affected by the results of recent elections around the world. Around 71% say the sector will benefit while 51% say the insurance sector will be positively affected.

The industrial goods and services sector is also seen as a beneficiary of recent election results with 51% saying it will be positively affected. The oil and gas sector is seen as the least likely to benefit – just 18% questioned believe it will be positively affected.

Charlotte Cruickshank, Global Head of Onboarding and Solutions at Ocorian said: “Rising geopolitical and economic tensions have posed problems for companies worldwide to solve and key to that has been seeking support from third party specialists and diversifying their investment focus.

“It is clear that outsourcing of more operations and working with more specialist third parties will continue to trend over the next 18 months as companies look to ensure they are protected as much as possible from the latest economic and geopolitical issues which have a significant impact on decision making.”

Ocorian’s newly launched Global Asset Monitor provides further in-depth insights into how public and private markets are evolving, highlighting key investment trends shaping the financial landscape. With private assets growing nearly three times as fast as public assets over the past 15 years, the report explores how investors are adapting their strategies in response.

Ocorian is a global leader in fund administration, capital markets, corporate and fiduciary services. Ocorian helps its clients solve complex problems so they can optimise investment performance and build their competitive advantage.

ENDS

Notes

Please note that the above release is intended to provide a very general overview of the matters to which it relates and is provided for your convenience. It is not intended as legal or investment advice and should not be relied on as such.

*Ocorian commissioned independent research company PureProfile to conduct a global study of 300 senior executives. The survey was carried out among asset managers working in private equity, venture capital, real estate, infrastructure or private debt  board directors or senior executives of private or publicly listed companies with a minimum annual revenue of $10 million, companies operating in capital markets, wealth managers, family offices and professional services providers such as legal counsel working for alternative asset managers, large listed or unlisted corporates, family offices, wealth managers and capital markets professionals.  The survey was conducted in October 2024 in Canada, France, Germany, Hong Kong, Ireland, Norway, Saudi Arabia, Singapore, South Africa, Spain, UAE, UK, US, Bahrain, Denmark, Italy, Kuwait, Portugal and Switzerland.