Fund operating models have typically been categorized into two separate formats: fully outsourced or controlled in-house. However, with the advent of digital-first service providers and advancements in automation and technology, managers can now take a blended approach, striking just the right balance between in-house and outsourcing.

Before making a change, the asset manager or operations professional should identify their in-house capabilities and what they can deliver at the current moment. The remaining expertise can be leveraged from an outsourcing partner, making the life of the internal personnel less burdensome.

Benefits of a Hybrid Operating Model

  • Strong Collaboration & Operational Control:

    The outsource vendor works more like a partner than a third-party provider. This enables better collaboration and efficient control of internal operations.

  • Increased Talent Pool:

    Due to varied asset classes, systems and process, it’s difficult to find talent. Either such resources are expensive, or the training curve is too high. When choosing an established partner who has expertise across asset classes, process, systems and more, it becomes much easier to get access to such talent.

  • Post-Deployment Support:

    Having a vendor who is more like a partner and who does not believe in a short-term fix by just providing systems and tools should be the ultimate goal. Organizations need a partner that cares about long-term needs, ensuring not only implementation but a smooth process afterwards.

  • Local Control, Ownership & Offshore Pricing:

    In a hybrid model, you may have an instance in which you are dealing only with onshore folks who are residing in your time zone, which makes things easier to coordinate. The onshore folks of the vendor partner can deal with their offshore employees when needed, ultimately providing services at a lower cost with less headache and delay.

  • Access to Partner Best Practices:

    Due to the fact that vendor partners tend to work with multiple clients, you get access to best practices through their level of expertise.

  • Cost Effective:

    When implementing an outsourcing partner, fixed costs are reduced with far more value over hiring internal personnel.

As described above, firms can tap into a number of benefits by harnessing the technology and expertise that an outsourcing partner has to offer. Learn more about IVP Managed Services, or contact at