As hedge funds continue to grow and prosper, the need for a “one-stop shop” IT provider is becoming increasingly necessary. As a fund manager, your job is demanding enough; therefore, finding one company that can hone in on your technology needs and quickly provide solutions is a smart investment, as well as a good relief. Here are a few of the main benefits firms can realize in working with a single, all-inclusive IT provider.
Communication & Cost Savings
By consolidating all of your IT into one single provider, you can reap the benefits in two different ways - through time and actual reduction of costs. With one provider, you are only dealing with one team,andset of contact points – and that means only one bill. This facilitates your daily life as well; when a problem arises you only have to call one person instead of ten. Furthermore, it can reduce fiscal costs. You won’t have to pony up for multiple start-up and registration fees, and you’ll have greater control over the structure of your expenses.
Using one provider allows you to cut through the complexity. The increasing complexity of the financial industry—including new regulations and restrictions—requires a greater depth of expertise when it comes to technology. Having everything under one umbrella greatly simplifies all of your IT requirements and reduces cross-over inefficiencies. Additionally, instant access to experienced technical personnel allows your fund to focus on its core competencies and key competitive differentiators.
Investors are vigilant about mitigating operational risk, and the ability to inspire confidence in this area has become a competitive edge for hedge funds. By leveraging an all-inclusive provider, hedge funds can offer investors full transparency, a robust disaster recovery plan, a business continuity program, consistent risk management and compliance oversight processes.
This becomes increasingly relevant as firms move to the cloud. Here, you can get secure remote access to all of your information, applications and solutions, making your job a whole lot easier. But in the event that your IT provider can’t offer you every service or solution your firm is looking for, you’d be smart to ask them about their network of strategic partnerships. Through just one alliance you can gain access to many other reliable vendors. In the case of the cloud, you can reap the benefits of a world-class order management system, for example, directly through a cloud services provider – as long as they have the ability to host that application.
For more information on outsourcing your technology and laying the foundation of your IT plan, click here.