Product Type: Market Research Report
Published by: TowerGroup
Published: February 2006
Product Code: R301-812Description 2005 proved to be the year of fully outsourced reference data management, or managed reference data solutions. The model, a natural evolution of the progress in data management technologies, gained momentum, which resulted in a small number of large-scale deals involving prominent investment managers and broker-dealers. Although data from the 2005 TowerGroup Reference Data Survey of global securities firms reveals that the appetite for outsourcing reference data management (RDM) is still light, interest has grown since the 2002 survey. However, many questions remain unanswered with this model, involving cost, risk profile, liability, and service levels, and given the model's infancy, few people have answers. This TowerGroup Research Note addresses these questions. In conjunction with selected results from the 2005 TowerGroup Reference Data Survey, the Note presents the facts behind managed reference data solutions.Table of Contents - TowerGroup Take-Aways
- Report Coverage
- Vision
- The Securities Industry's Appetite for Outsourcing
- Exhibit 1: The Shifting Bell Curve of Firms Attitude Toward Operational Outsourcing (2002-05)
- Exhibit 2: The Changing Attitude Toward Outsourcing Reference Data Management (2002-05)
- Evolution of the Managed Reference Data Model
- Exhibit 3: Milestones in the Evolution of Managed Reference Data Solutions (1997-2006)
- How a Managed Reference Data Solution Works
- Exhibit 4: Architecture of a "Hybrid" Managed Reference Data Solution (2006)
- Why Outsource Reference Data Management?
- Exhibit 5: Firms' Anticipated Benefits of Outsourcing Data Management (2005)
- Data Complexity and Volume
- Risk Mitigation and Regulatory Pressure
- Increased Speed to Market
- Cost Control and Reduction
- Why Not Outsource Reference Data Management?
- Exhibit 6: Impediments to Outsourcing Data Management (2005)
- A Nascent and Unproven Model
- Uncertainty About What Is Being Bought
- Data Ownership Politics
- Effectively Leveraging a Shared Infrastructure
- Best Practices in RDM Outsourcing
- Building an Effective Business Case
- Exhibit 7: Importance of ROI as a Metric for Reference Data Management Projects (2005)
- Benchmarking and Determining Service Levels
- Planning Ahead for Data Consumers' Requirements
- Setting Realistic Expectations
- Major Service Providers
- Accenture Managed Reference Data Services
- Capco Reference Data Services
- Cicada
- Other Service Providers
- Summary
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