As we approach a new year, we aim to reflect on the Managed IT trends of 2023, drawing insights to shape our expectations for the upcoming year. By combining our exclusive data with valuable insights from credible industry reports, our commitment is to keep you well-informed and prepared for the new year. 

We analyzed our data from last year, using our 2023 Managed IT Report. Our report illuminates the growing utilization and intricate nature of technology, showcasing how such adoption is poised to shape the future of efficiency, bolster infrastructure resilience, and enhance client satisfaction for investment management firms considering outsourcing IT to a Managed Services Provider (MSP).  

Our report revealed the choice to outsource, highlighting that 92 percent of firms with $5 billion or more in Assets Under Management (AUM) identified the imperative to efficiently scale IT operations. In the current landscape, the strategic incorporation of state-of-the-art IT solutions is no longer merely an alternative but rather a vital necessity for scaling operations and redirecting focus toward your firm’s most impactful endeavors. 

In this blog, we will uncover the nuances and forecast for the pivotal role of Managed IT in 2024. The future is digital, and at Agio, we are not just keeping pace with it; we are pioneering the way forward. 

Managed IT and Cybersecurity Consolidation 

Our latest findings from the 2023 Managed IT Report indicate a noticeable trend toward consolidating managed IT and cybersecurity services under a single provider. The survey respondents unanimously agree that this integration significantly improves the overall cybersecurity posture.  

All participants in our Managed IT survey expressed a desire for consolidation, emphasizing the pursuit of improved uptime and service quality. Notably, over half of the respondents (53%) specifically indicated their preference to bundle managed IT and security operations, seeking a provider capable of managing and supporting a public cloud environment. While initial reservations regarding the consolidation of IT and cybersecurity services have been observed due to concerns about conflicts of interest and potential blind spots, the trend is expected to persist and grow in the coming years.

global service desk predicting issues before they impact

Generative AI and Machine Learning Accelerated Adoption 

Amid the rapid expansion of Artificial Intelligence (AI) and machine learning, we anticipate continued adoption by investment management firms in the upcoming year, coupled with the ongoing evolution of the technology itself. As McKinsey’s 2021 Global Asset Management Survey highlighted, asset managers are increasing technology investments at a six percent annual rate, with AI and automation recognized as pivotal for driving efficiency and revenue growth. Leading asset managers, despite industry reservations, have demonstrated the ability to enhance efficiency by up to 30 percent through the adoption of AI, automation, and cloud technologies. 

Moreover, internal adoption is not the sole focus, as revealed by our report where 52 percent of surveyed firms expressed AI as an essential service capability for their Managed Services Providers (MSPs). This underscores the desire for both internal AI adoption and alignment with vendors utilizing AI for enhanced service delivery. 

See also  HIPAA Compliance Checklist

However, caution is essential. While AI presents numerous benefits, potential issues may arise if found in the wrong hands. Our recent article, “Look Ahead: Cybersecurity 2024 Predictions for Investment Management Firms,” delves into these concerns, emphasizing the importance of responsible AI usage. The SEC’s recent caution against “AI washing” further underscores the associated business risks linked to rapid AI adoption, urging firms to avoid making unsupported claims about incompletely understood technologies to mitigate potential regulatory actions. To guide future AI regulations, MIT has released white papers aimed at assisting regulators in effective AI governance. 

To read more on the AI Outlook, check out the following pieces: 

Cloud Migration and Hybrid Infrastructure 

The acceleration towards cloud-based solutions and hybrid IT infrastructures is among the many outlooks on Managed IT for 2024. Cloud migration is predicted to bring forth enhanced scalability, accessibility, and data security, presenting manifold benefits for investment management firms. Against the backdrop of geopolitical tensions and cybersecurity threats, localized cloud solutions are emerging as a strategic imperative, with markets for government clouds and distributed cloud predicted to surpass $41 billion and $7 billion respectively, data noted by Deloitte when considering cloud migration in 2024.  

In the coming months, investment management firms are expected to exhibit a strategic focus on variable cost strategies, emphasizing a shift from fixed to variable technology costs. McKinsey believes that this shift will correlate with an increase in outsourcing to external MSPs. The industry is witnessing a surge in outsourcing, with cloud migration still in its early stages. In 2023, 87 percent of hedge funds surveyed as part of Agio’s Managed IT report plan to transition to a multi-cloud model in the next two years. In doing so, these financial firms are shifting their workloads to the public cloud, alleviating both internal and external technological tensions.  

2023 hedge fund managed it trends report

Regulatory Technology Solutions 

As regulatory challenges increase, technology becomes a key enabler in streamlining compliance processes and automating reporting to ensure adherence to regulation requirements. According to Deloitte’s findings, there are new impending regulations on AI in the European Union in 2024. This decision in the EU can create both obstacles and catalysts for change, and it emphasizes the need for firms to consider governance and controls to efficiently manage risks.  

Looking ahead, Agio will be prepared to offer you the best solutions for regulatory technology changes. As we saw in 2023, the SEC released new rules and regulations regarding cybersecurity risk management for public companies. At Agio, we are equipped with the knowledge and services to make sure you are always prepared to comply with the newest regulations promptly. 

See also  Igniting Urgency: The $9,000 Per Minute IT Wake-Up Call for Investment Management Leaders

Technical Debt Reduction 

As organizations harness technology as a core driver of value, the accrual of technical debt becomes a nuanced challenge that demands strategic attention. In a McKinsey survey, 60 percent of Chief Information Officers (CIOs) acknowledged a perceptible increase in their organization’s technical debt over the past three years, signaling a pressing concern in the tech realm. Our insights, drawn from our managed IT report, reveal that 59 percent of firms outsourcing for more than four years prioritize improved cost efficiency, further emphasizing the growing significance of managing technical debt effectively. 

With outsourcing emerging as a critical factor in the pursuit of cost efficiency and debt reduction, we expect 2024 to hold the promise of innovative strategies that align with the evolving dynamics of the technology landscape. As businesses strive for technological excellence, the judicious management of technical debt will undoubtedly play a defining role in their success. 

Enhanced Client Experience Through Innovative Technology 

As customer expectations evolve, with an increasing demand for personalization and timely interactions, innovative technologies for investment management firms play a pivotal role in meeting these demands. The integration of advanced tools such as chatbots, personalized dashboards, and enhanced communication tools are methods to transform client interaction into satisfaction.  

The technological evolution does not stop there. Here at Agio, we’ve pioneered Case Enrichment technology, powered by generative AI, that swiftly resolves client cases through advanced data analysis. The system accumulates crucial information from historical records, client environments, and expert availability, forging the path for a seamless resolution process. The impact of our new services benefits businesses and empowers managed IT MSPs to excel in a technology-driven industry, all the while keeping the client experience as the utmost priority.  

managing your it and cybersecurity services has never been this easy

Final Thoughts 

As we approach a new year, staying ahead of technological advancements becomes paramount for your firm’s success. Building a resilient infrastructure now ensures a strong foundation for the years to come. At Agio, we are poised to provide you with the services and resources needed to navigate complex technology landscapes, allowing you to concentrate on your firm’s most impactful endeavors. Whether you’re initiating your journey with an MSP or seeking a fresh start with a new MSP in the upcoming year, we’ve got you covered. 

Step into the new year well-prepared by assessing the health of your existing infrastructure. Agio’s IT Infrastructure Assessment offers unparalleled visibility into your technology environment, enabling us to identify potential risk factors and implement customized solutions to keep you operational. It’s a risk-free opportunity with everything to gain. 

When you’re ready for comprehensive Managed IT services, we’re here to assist you. Contact us today to ensure your year starts on the right tech foot.