If you are the CTO, CIO or senior IT manager of a hedge fund, you have, or most likely will consider, outsourcing or upgrading your outsourced technology. The hedge fund space is somewhat unique in terms of IT provisioning, as funds can have large revenues, require critical applications, and yet have small physical IT footprints.
Hedge funds are increasingly embracing the IT outsourcing model because of the benefits it offers, including an intelligent help desk, desktop management, a highly available infrastructure and application environment, maintained data security and integrity, defined and predictable service costs, and comprehensive management policies. And as IT outsourcing gains wider acceptance in the hedge fund community, outsourcing this function continues to evolve—new delivery technologies are emerging, network bandwidth continues to become more accessible, and innovative charging models are developing.
While the decision to outsource is a difficult one, deciding what to outsource and with whom to partner can be just as daunting. There are a number of factors to consider when making the decision.