Growth is the primary goal of any organisation, whether an investment bank or otherwise. However, and especially in investment banking, growth puts pressure both on resources and cash flow. Bagging a big project requires collaboration of some of the best minds in an organisation, but it should not take away such resources from servicing the regular clients, as this may risk losing them. In addition, limited budgets could make it difficult to hire new staff regularly.
These factors have led to investment banking outsourcing, now playing a prominent role in investment banking. Investment banking firms are able to outsource a number of operations to entities with deep knowledge and proven capabilities, and benefit from substantially higher ROI and value.
Entities that provide outsourcing services include the following:
- Acuity Knowledge Partners:
The company is one of the leading providers of investment banking outsourcing services. It provides a variety of services including those related to data analytics, mergers and acquisitions, compliance support and investment research. The company employs the help of data science, artificial intelligence and machine learning to provide consultancy services to clients ranging from investment bankers to hedge funds. Its expertise in a number of sectors and proficiency in macroeconomic and forex research enable it to provide a high quality of service.
A Fortune 500 company, Accenture was established more than three decades ago and is one of the leading companies that provide multinational professional services. It has significant experience in a variety of services related to investment banking and can support most of the tasks of any investment banking firm. It provides services in the fields of data analytics, change management, technology consultation, and mergers and acquisitions.
The technology giant and one of the leading companies in the field of technology consultancy has been engaged in providing consultancy services since 1981. It provides services related to integration, data analytics and workplace transformation that enable the smart and easy integration of companies following a merger or acquisition. It also provides other support services related to mergers and acquisitions, such as information technology analysis.
A French company with more than half a century’s experience, Capgemini is a leading M&A company, with employees in more than 50 countries. Its experience and knowledge of country-specific requirements and business aspects enable it to offer investment banking outsourcing services to leading global investment banks.
5. Everest Group:
Spread across three continents, the group’ s expertise ranges from business consultancy to engineering services to facilitate investment banking and M&A activity. It also provides local support and talent acquisition services.
The growing complexity of work and costs in investment banking have led to a number of firms outsourcing their operations – from back-office functions such as legal and human resources operations to concluding deals, such as mergers and acquisitions, private equity investments and even raising finance. The scope of outsourcing has widened significantly in recent years, with functions complementary to the field of investment banking also being outsourced. These functions include data analytics, market research, and financial and economic research. The increasing reliance of leading investment banking companies on outsourcing has enabled many firms to play a prominent role in the space.