Hedge Funds Accelerate Shift to Outsourcing to Counter Risks of Extended Work-from-Anywhere Model
As hedge funds adjust to the long-term implications of a global pandemic, they’re looking for managed IT solutions and security operations that can tackle an increasingly complex and risky technology landscape. A new report shows that outsourcing, multi-cloud environments, and artificial intelligence (AI) fit the bill.
The 2022 Hedge Fund Managed IT Trends Report is an in-depth look at the technology engines that power the hedge fund industry— particularly their technology environment and information security features.
The survey, conducted earlier this year, collected the opinions and perceptions of 100 hedge fund practitioners—spanning the technology, operations, cybersecurity, and compliance fields—about current and future technology management and information security programs, initiatives, and readiness.
According to respondents, the next two years could see a significant shift to outsourcing managed IT solutions and security operations. With a dispersed workforce, firms have recognized a need for better remote access and multi-cloud environments to improve support, resiliency, and uptime.
Firms are also weighing the options of in-sourcing and outsourcing managed IT and landing on a hybrid model (59%) as the best way to meet the challenges introduced over the last two years. Looking ahead to the next two years, 89 percent of firms currently in-sourcing managed IT are likely to shift more of their IT spend to outsourced services.
Those firms making the switch are explicitly looking for partners who can deliver heightened security (54%), public cloud management and support expertise (46%), and more responsive end-user support (44%). This convergence of managed IT and security operations is a critical service innovation, and respondents almost unanimously agreed that consolidating the two improved overall cyber posture.
The report also found that, as the industry continues to evolve, firms are rejecting the outdated break/fix support model in favor of the prediction and prevention abilities of artificial intelligence (AI). Respondents predicted that managed service providers (MSPs) will employ AI to remove service friction and increase service uptime (47%) and enable support agents to be more responsive when issues do arise (47%).
The 2022 Hedge Fund Managed IT Trends Report breaks down respondent answers across demographics—seniority, role, number of employees, years in operation, and assets under management—for an in-depth view of the similarities and differences in how firms source and consume managed IT services.
We hope this report provides a benchmark to measure your firm’s technology programs and readiness as you prepare to address the growing complexities, risks, and regulatory and investor scrutiny in the months and years ahead.
Download the full 2022 Hedge Fund Managed IT Trends Report to read more.
For a complete picture of trends in the industry, we encourage you to read our companion report, the 2022 Hedge Fund Cybersecurity Trends Report. Together they show that the need to combine technology and security operations under one roof is a driving factor for firms who plan to—or already do—outsource their cybersecurity and managed IT services.
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