Recession creates a strong case for outsourcing compliance (Institutional Investor)

“Outsourced services were born out of a crisis,” states Amy Lynch, FrontLine’s Founder and President. Ms. Lynch has the lead comments in Institutional Investor‘s coverage of what an impending recession would mean for Wall Street firms and their ability to maintain back office functions, such as compliance, operations, IT and accounting. Compliance provided as an outsourced service has grown tremendously since the financial crisis of 2008, and would take on an even greater role in the face of an economic downturn. Ms. Lynch explains that the investment industry understands how recessions work and where to cut costs, with payroll being the most expensive item on any balance sheet. She adds that by outsourcing in lieu of retaining employees, firms see significant cost savings and are still able to maintain and even increase efficiencies in necessary areas such as compliance. See Institutional Investor, “Layoffs Are Coming. The Outsourcing Industry Will Benefit.” Also, see Business Insider‘s Finance Highlights, “6. If the finance industry starts cutting jobs, the outsourcing industry stands to benefit.”