A global survey of quant fund managers who collectively oversee $1.2 trillion in assets under management shows that 73% of managers have already increased their level of outsourcing of data services over the last two years.
The study, which is from quant technologies provider SigTech, reveals this trend looks set to continue: 79% of those surveyed plan to increase their level of outsourcing between now and 2024, with almost one in four (23%) expecting a dramatic increase.
70% of respondents have had to invest heavily in their internal capabilities to clean and validate data, but when asked which factors are fuelling the growing trend towards data services outsourcing, a shortage of qualified in-house subject matter experts and resources was still cited as the biggest driver.
More than half of the respondents cited vendor negotiations (58%) and data cleansing (54%) as parts of the data value chain that are the most easily outsourced.
Read the rest of the findings in SigTech’s Financial Data Impact Report 2022.
Daniel Leveau, VP Investor Solutions at SigTech, comments: “It is clear that there is growing momentum among investors to outsource more data services. The specialist skills needed to manage data and the increasing cost of doing so effectively makes outsourcing an increasingly viable option,and allows investors to concentrate on what matters: alpha generation.
At SigTech we have identified the process of cleaning and validating data as a key component of our service offering. Our clients highly value the operationally ready, new data sources that are available to them as part of our best-in-class backtesting engine.”