Acceptance of remote work transitions into expanded outsourcing (Institutional Investor)

Since the beginning days of the COVID pandemic, remote work for employees became the norm and continues today. Now that money managers have accepted the role of remote work, and faced with a likely recession, they are seizing the benefits of outsourced services in lieu of internal hires. Amy Lynch, Founder and President of FrontLine, states that the continued growth of outsourced services, including the growth of compliance offerings from FrontLine, indicates that the work-from-home model has in turn made outsourcing feel more normal and feasible to these firms. A recent Northern Trust survey of global asset managers backs that up, with 60 percent stating that the remote work environment will increase their reliance on outsourced functions from third parties. Ms. Lynch further comments that if a firm has previously decided on having remote employees, then it would make sense to instead go to an outsourced model or vendor to provide that function. She adds that for asset managers it’s about increasing efficiencies, and outsourcing provides the benefits of addressing increased turnover and staffing challenges, lowering costs and accessing specialized expertise. See Institutional Investor, “Employees Love Remote Work – But It May Get Some Jobs Outsourced”