Over the last few years, the stock market as well as the mutual funds market has gone through significant changes. Firms have been dealing with pressures from new rules globally and rising demand for transparency as well as lower fees from investors. Thus, it has become quite expensive for firms to drive their businesses. Moreover, the old motto of growth leading to an equal investment in the middle as well as back-office processes makes it almost impossible to derive profit margins. So, here Outsourcing Telemarketing Services works.

A rapidly growing number of investment firms have been turning to BPO for Outsourcing Telemarketing Services. We are at a curving point in the industry where businesses need to adapt to the evolving landscape. BPO is becoming the new norm for firms to survive.

Investor’s guide to BPO

BPO is the enrollment of a third-party partner to handle operations and processes. This involves data and handling, back-office tasks, reporting, and other Outsourcing Telemarketing Services. The technology engaged to manage these services can be a combination of both service providers as well as asset managers.

The Current Status

While investment managers in the stock market rarely allowed third parties in their businesses historically, it has become progressively trendy post-crisis with the rising burdens from fee tension, the flexibility of internal staffing models, and rising technology needs. It has enforced an additional burden on the firms as they try to meet user’s needs while upholding investment portfolios. It has also imposed regulations that restrict even more

With today’s crowded mutual fund market, inflows into static plans as well as burden to keep fees low, portfolio managers need to focus more on investing as well as offering value to clients. But, not on nurturing back offices and managing data systems. This has compelled several firms to engage BPOs for Outsourcing Telemarketing Services and more. BPOs offer ready-to-go infrastructure as well as the latest technologies to meet business needs, without any financial as well as personnel investment.

Besides this, some firms have witnessed gradual growth, even over short time periods. It has become almost impossible for firms to evolve their platforms fast enough to match growing AUM as well as stock investor pools. Thus, several large asset managers have hired BPO partners who can offer swift, adaptable, and top-notch solutions. Meanwhile, startup hedge funds are hiring BPOs, preferring to retain their in-house resources and focus on investment.

Concerns with BPOs

With the rapid growth of BPO in the stock market, there’s a rise in some common concerns about longevity, liability, logistics, and financial needs.

Longevity

A BPO can evolve into an extension of the company, so firms depend on those BPOs to withstand. Worry about the chance if that BPO leads the firm wobbling can cause mistrust to sign a partnership. BPO’s stability is yet another thing to worry about.

Control

For several firms, it can be terrifying to think about rebating control over operations. Aces can deal with this, as they are experts in managing their entire business operations. While some may feel doubtful about trusting a third-party BPO firm to take over the control.

Liability

Associating a third party for business operations adds a layer of liability over their work, on top of the firm’s internal affairs. Thus, it can seem wise to retain operations in-house even at a huge expense.

Logistics as well as financial needs

Some firms don’t accept the role of BPOs. It can seem logistically as well as financially taxing to hire a third party to take control over operations, data handling, and processing.

Wrapping Up

With the passage in which the stock market is moving, firms will have to think cautiously about how to handle operational needs without negotiating or lingering away from the focus on portfolios as well as investments. So, a BPO can be the best solution. A firm needs to find the right BPO partner to take on the development, and growth of operations. This will enable the firm to focus just on investing beneficially. Octopus Tech, a leading BPO expects to see more stock market firms hiring BPOs over the next few years.