The sudden lockdown orders of March 2020 caught the world by surprise, and asset and wealth managers scrambled to adapt to remote work. With staff dispersed and displaced from the systems they relied on in their offices, firms faced significant operational challenges. However, judging from conversations with our clients, firms that outsourced were way ahead of the game. By outsourcing core operational technology, data management and back-office functions such as reconciliation, these firms were able to operate on behalf of clients with minimal disruption – the very definition of business continuity.
Business continuity may not have been the primary motivator for firms who choose to outsource. While investment firms are required to have business continuity plans (BCPs), few have faced a crisis or dislocation that completely disrupted operations. The pandemic certainly brought the business continuity benefits of outsourcing to the fore.
Our new white paper, Lessons from a Pandemic: Outsourcing for Business Continuity and Disaster Recovery, explains how outsourcing supports business continuity planning, and ensures that firms can fulfill their fiduciary responsibilities to clients. Outlined below are a few key benefits of outsourcing specific to business continuity, including:
- Mitigating the risk that a disaster will compromise a firm’s technology infrastructure, data and operations
- Enabling a remote workforce to connect to core systems from anywhere with security safeguards
- Adding depth of personnel and expertise to minimize the disruptive effects of workforce turnover and key person risk
- Strengthening compliance with regulatory requirements for business continuity planning
The paper also points out the attributes to look for in outsourcing providers to ensure your business continuity and disaster recovery plans can be supported. For example, in an era of ubiquitous data breaches, the next disruption could strike in the form of a sophisticated cyberattack. An outsourcing provider should have third-party attestations confirming it has implemented strong security measures and has controls in place to counteract cyber threats.
There are many other reasons to consider outsourcing – potential cost savings, increased focus on core competencies and efficiencies, and the agility to adapt to changing market conditions, just to name a few. The pandemic has pushed business continuity to the top of the checklist, and our Advent Outsourcing Services team is seeing a sharp increase in the number of firms deciding to go the outsourcing route in the wake of the unprecedented global health crisis.
Advent Outsourcing Services (AOS) supports business continuity planning with cloud-delivered technology, a dedicated service team, client-specific monitoring and support, high-security data center facilities, and a range of professionally managed operational services. We have produced a SOC-1 Type 2 report, attesting that our security measures and process controls meet the most rigorous industry standards.
Simply stated, outsourcing essential technology is the best way to ensure secure access to critical software and data while maintaining strong compliance in the event of a crisis.
To better understand how outsourcing can strengthen your business continuity plan, check out our white paper. And contact us to explore outsourcing options with AOS.