The survey took place at a Northern Trust seminar in May in Hong Kong.

Half of Asia-based investment managers have said their organisations are currently outsourcing some middle-office functions or had done so over the last five years, according to a survey carried out at a Northern Trust advisory seminar.

The Northern Trust seminar took place in May in Hong Kong.

The survey also found that over a third, or 38 per cent, had implemented an outsourcing project over the five year period.

Over half of respondents (58 per cent) cited the “most important driver” outsourcing decisions were influenced by perceptions of the service provider’s IT infrastructure.  Cost considerations were also a catalyst for outsourcing decisions at 25 per cent, and just 17 per cent believed a provider’s scale to be the most important.

“With evolving regulatory requirements, a low-yield environment and continuing pressure on pricing and cost structures, both asset owners and asset managers are facing considerable challenges and increasing complexity in the market,” said Caroline Higgins, head of global fund services for Asia, at Northern Trust. “Some institutional investors have found value in middle office outsourcing, which allows them to leverage the expertise of global providers, such as Northern Trust, with capabilities and servicing hubs in Asia. We expect to see more uptake of middle office outsourcing in the region as institutional investors increasingly see the solution’s benefits."