Middle Office Outsourcing Market to Reach US$ 9,894.7 Million at a CAGR of 7.8% in 2027

Middle Office Outsourcing Market to 2027 - Global Analysis and Forecast by Offering (Portfolio Management, Trade Management, Others); End-Use (Investment Banking and Management, Broker- Dealers, Stock Exchanges, Others)

  • Report Code : TIPRE00008057
  • Category : Banking, Financial Services, and Insurance
  • Status : Published
  • No. of Pages : 139
Buy Now

The middle office outsourcing market was valued at US$ 5,084.1 Mn in 2018; it is estimated to grow at a CAGR of 7.8% to reach US$ 9,894.7 Mn by 2027.

The growing need to improve the overall business efficiency is one of the major factors driving the middle office outsourcing market. To meet the efficiency requirements of an organization, the vendors are currently coming up with innovative services and product offerings. They are also focusing on building strategic planning aligned directly with the operations and functions of the organization. Middle office outsourcing services help in aligning business objectives with management planning, and thus maintains coordination between different activities of the organization. For instance, the costs associated with the traditional banking system can be reduced by outsourcing middle office processes, such as procurement and trade-related operations. Furthermore, to enhance the market share and maintain a competitive edge, players in the market are coming up with new ideas and introducing many new technologies and techniques into the middle office services. Furthermore, predictive asset maintenance introduced is likely to help companies in the reduction of maintenance cost, saving money on scheduled repairs, and eliminating breakdowns if any.

Lucrative Regions for Middle Office Outsourcing Market

  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Market Insights

Rise of Automation and Cloud Solutions

The optimization of middle office operations, such as reconciliation reporting and billing, portfolio accounting, staff augmentation, plays a crucial role in financial institutions as outsourcing helps in overcoming issues related to workflow disruption and also safeguards from wrong reporting. Thus, the emergence of automation is among the key trends in the global middle office outsourcing market. It eliminates unnecessary processes, reduces operational risks, provides valuable insights, and cuts down cost. Furthermore, cloud-based solutions, such as the “SaaS middle office model,” are being increasingly adopted for decreasing operational costs. The emergence of cloud solutions and increasing automation are likely to drive the middle office outsourcing market in the coming future. Cloud-based middle office solutions help in enhancing operational flexibility by providing frequent upgrades and enhancements, on-demand scalability, and extensibility as firms launch new and innovative products.

Offering Market Insights

Portfolio management refers to tracking the performance of individual securities in a stock portfolio, and examining the portfolio to ensure that it meets the investor's growth expectations. The portfolio and trading management help High-net-worth (HNW) individuals in handling their financial assets effectively and securely. It also provides real-time data and analytics in making better investment decisions and also helps in enhancing management performance, and optimizing the operational agility. With the increasing competition in the investment management world, various investors are focusing on the associated fixed costs. Investors are also building different business strategies to make  informed decisions relating to outsourcing of non-core aspects of their business, such as Back-Office operations or Middle-Office functions.

Middle Office Outsourcing Market, by Product – 2018 and 2027

Middle Office Outsourcing Market, by Product – 2018 and 2027
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

End Use Market Insight

Middle office services involve various stakeholders, namely brokers, custodians, and other third-parties. For automating the workflow process and reducing the overall costs/expenses, clients outsource their middle office operations, thereby leading to increased need for middle office outsourcing services. Adding to this, it is difficult for private equity and hedge fund firms to diversify the asset risks and meet the regulatory compliances due to high investments and costs involved. Therefore, they prefer outsourcing it to the third party.

Customize Research To Suit Your Requirement

We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.

Middle Office Outsourcing Market: Strategic Insights

Middle Office Outsourcing Market

  • CAGR (2018 - 2027)
    7.8%
  • Market Size 2018
    US$ 5.08 Billion
  • Market Size 2027
    US$ 9.89 Billion

Market Dynamics

GROWTH DRIVERS
  • XXXXXXX
  • XXXXXXX
  • XXXXXXX
FUTURE TRENDS
  • XXXXXXX
  • XXXXXXX
  • XXXXXXX
OPPORTUNITIES
  • XXXXXXX
  • XXXXXXX
  • XXXXXXX

Key Players

  • Adepa Global Services S.A.
  • Brown Brothers Harriman
  • Caceis
  • Hedgeguard
  • JPMorgan Chase & Co.
  • Northern Trust Corporation
  • Societe Generale Securities Services
  • SS&C Technologies, Inc.
  • State Street Corporation
  • The Bank of New York Mellon Corporation

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Offering
  • Portfolio Management
  • Trade Management
  • Others
End-Use
  • Investment Banking and Management
  • Broker- Dealers
  • Stock Exchanges
  • Others
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

The players operating in the enterprise content management market focus on strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:

  • In December 2019, CACEIS and S3 would benefit from value creation gaining competitive positioning and benefits from enhanced geographical presence, full coverage of the asset servicing value chain as well as expanded offering to support both existing and new clients in their projects and their development.
  • In September 2019, Northern Trust launched a range of new client dashboards for Omnium, its middle- and back-office technology platform for alternative fund administration.

Global Middle Office Outsourcing Market Segments:

Middle Office Outsourcing Market – By Offering

  • Portfolio Management
  • Trade Management
  • Others

Middle Office Outsourcing Market – By Component

  • Investment Banking and Management
  • Broker- Dealers
  • Stock Exchanges
  • Others

Middle Office Outsourcing Market – By Geography

  • North America

    • U.S.
    • Canada
    • Mexico
  • Europe

    • France
    • Germany
    • Italy
    • Spain
    • UK
    • Rest of Europe
  • Asia Pacific (APAC)

    • Australia
    • China
    • India
    • Japan
    • Rest of APAC
  • Middle East & Africa (MEA)

    • Saudi Arabia
    • UAE
    • South Africa
    • Rest of MEA
  • South America (SAM)

    • Brazil
    • Rest of SAM

Companies

  • Adepa Global Services S.A.
  • Brown Brothers Harriman
  • CACEIS
  • Hedgeguard
  • JPMorgan Chase & Co.
  • Northern Trust Corporation
  • Societe Generale Securities Services
  • SS&C Technologies, Inc.
  • State Street Corporation
  • The Bank of New York Mellon Corporation

Middle Office Outsourcing Market Report Scope

Report Attribute Details
Market size in 2018 US$ 5.08 Billion
Market Size by 2027 US$ 9.89 Billion
Global CAGR (2018 - 2027) 7.8%
Historical Data 2016-2017
Forecast period 2019-2027
Segments Covered By Offering
  • Portfolio Management
  • Trade Management
  • Others
By End-Use
  • Investment Banking and Management
  • Broker- Dealers
  • Stock Exchanges
  • Others
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Adepa Global Services S.A.
  • Brown Brothers Harriman
  • Caceis
  • Hedgeguard
  • JPMorgan Chase & Co.
  • Northern Trust Corporation
  • Societe Generale Securities Services
  • SS&C Technologies, Inc.
  • State Street Corporation
  • The Bank of New York Mellon Corporation
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Offering ; End-Use

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

    Frequently Asked Questions


    Which offering type is commonly used for Middle Office Outsourcing Market?

    The portfolio management segment led the market in 2018. Factors contributing to the growth of portfolio management segment as it leads to savings by exercising three main levers, namely- Better Spend, Supplier, and Market Insights; Improved Ad Hoc Sourcing and Buying Performance; Increased Conversion into Bottom Line Savings.

    What are market opportunities for Middle Office Outsourcing Market?

    Data analytics strategies are adopted for a wide range of functions, namely, quantitative research, trading analytics, risk simulation, modeling, and transaction cost analysis. Most of the enterprises, operating in the middle office outsourcing, have vast data due to the growing adoption of technologies and analytical tools. Thus, the advent of big data analytics services can offer huge opportunities for the growth of the middle office outsourcing market.

    What factors are contributing to growth of the Middle Office Outsourcing Market?

    Growing need to improve business efficiency, and budget constraints and increasing adoption of new technologies are among the factors expected to drive the middle office outsourcing market worldwide. The advent of big data analytics services and rise of automation and cloud solutions are among the factors that are anticipated to offer ample growth opportunities for the players operating in the middle office outsourcing market during the forecast period.

    The List of Companies - Global Middle Office Outsourcing Market

     

    1. Adepa Global Services S.A.
    2. Brown Brothers Harriman
    3. Caceis
    4. Hedgeguard
    5. JPMorgan Chase & Co.
    6. Northern Trust Corporation
    7. Societe Generale Securities Services
    8. SS&C Technologies, Inc.
    9. State Street Corporation
    10. The Bank of New York Mellon Corporation

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

    As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

    The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

    For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

    A typical research interview fulfils the following functions:

    • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
    • Validates and strengthens in-house secondary research findings
    • Develops the analysis team’s expertise and market understanding

    Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

    • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
    • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

    Below is the breakup of our primary respondents by company, designation, and region:

    Research Methodology

    Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

    1. Data Analysis:

    Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

    • 3.1 Macro-Economic Factor Analysis:

    We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

    • 3.2 Country Level Data:

    Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

    • 3.3 Company Profile:

    The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

    • 3.4 Developing Base Number:

    Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

    1. Data Triangulation and Final Review:

    The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

    We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

    We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

    Your data will never be shared with third parties, however, we may send you information from time to time about our products that may be of interest to you. By submitting your details, you agree to be contacted by us. You may contact us at any time to opt-out.

    Trends and growth analysis reports related to Middle Office Outsourcing Market