However, buy-side companies prefer to address these challenges separately, according to recent data issued by the technology research company Gartner.
Gartner suggests that firms should be looking into their best practices in data management and focus on governance. Moreover, data governance, which sets out the requirements around data and data management, and the function which carries out the requirements, should not be confused and itβs time for firms to think beyond the walls of their organisation and treat data as an asset rather than a liability or risk.
IT departments can no longer control data and many investment management firms are turning to third-party service providers to outsource their IT services. According to a survey by Investit of IT managers in investment management firms, third-party suppliers will play a more prominent role in the future provision of IT services and 60% of participants already have or are planning alternative sourcing methods.
Firms gave their reasons for outsourcing as, alongside lowering costs, outsourcing allows access to skill sets and innovation that they cannot afford.
According to Steve Cheng (Global Head of Data Management Solutions, RIMES) data management is a fundamental part of investment management and because of a number of different factors firms are finding data management much harder. Cheng said that firms are finding it harder to handle data management because of the pressure from regulators and competition within the sector.
Cheng believes that if firms build good data governance now, then they will be able to respond more quickly and more cost-effectively to regulatory demands and will be ready when regulators approach them with more compliance.
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