Eight Considerations for Evaluating
Outsourced Hedge Fund IT Providers
1. Breadth of Solutions
Does the IT provider offer all of the solutions and services necessary to encompass all aspects of the technology foundation required to help your firm operate effectively and efficiently?
2. Depth & Quality of Staff
When selecting an outsourced IT provider, it is crucial to understand who you will potentially be working with. Is the organization led by a seasoned, reputable management team? Do they employ a skilled technical staff of engineers and analysts to assist with all stages of your infrastructure build-out and maintenance? What pertinent technical certifications do they hold? Are they available 24x7x365 if you experience an issue?
3. Experience in Deployment
Does the service provider have deep experience in deploying these types of solutions and services in an investment management environment? Do they have experience working with funds of all sizes, from small start-ups to large, well-established firms?
4. Project Management Experience
Will your firm receive the benefits of a dedicated technology manager and accompanying staff to ensure that your initiatives are coordinated, designed, and implemented to your exact unique requirements?
5. Hosted/Private Cloud Infrastructure Options
Cloud computing is now the de facto infrastructure choice for hedge funds and private equity firms. Look for a provider that offers a robust, scalable and secure cloud infrastructure model. Also, ensure that the infrastructure is maintained by a team of highly trained and certified professionals with experience in financial services operations.
6. Disaster Recovery Policies & Procedures
Does the provider maintain contingency plans or disaster recovery plans with proper risk controls designed to allow continued performance and availability at all times? How will the provider ensure that your data is secure, protected, and accessible even in the event of a disaster?
7. Vendor Relationships
Does the organization have strong vendor relationships in place that will allow them to leverage the benefits of best-in-class third-party providers on your behalf? Strategic partnerships with top-tier technology companies are crucial to maintaining a world-class IT environment for your firm.
8. Geographic Reach
Does the hedge fund IT provider have offices dispersed in different areas of the country and around the world? Do they employ financial IT support staff in different time zones to ensure that assistance is available to you 24x7x365? If your firm has multiple offices, or is considering opening more in the future, ensure that you will be able to use that provider to service all regions, thereby streamlining costs and increasing efficiency.