What to Consider When Outsourcing Financial Research Services

Posted by Ankit Kohli on January 3rd, 2017

Financial or investment research is the underlying factor that establishes the success of any asset management firm or investor. It is the crucial differentiator for asset management firms who are chasing higher returns from their investments all the time. In fact, it is essential to ensure the success of a firm while improving the results they provide to their clients. However, not all firms will have the resources (time and human resources) to ensure the accuracy, quality and coverage of research they require for delivering expected results. It makes sense for them to outsource financial research services. Financial service companies and asset managers rely on outsourced financial research services to improve the quality of their data. Service providers can provide the latest and timely perspectives to mutual fund managers and financial institutions through technical and quantitative analysis and other advanced methods.

When outsourcing financial research services, companies must make sure that the research can be customised to their requirements. Customised research can be provided across geographies, asset classes, and sectors to meet industry, company, library, economic, or thematic research needs. Some of the best financial research services are not independent researchers. Instead, clients rely on them to support in-house research departments and specialists with data-intensive and repetitive tasks. Hence, when seeking a financial research service provider, be sure to verify its capabilities and choose a firm that can handle peak-load situations flexibly and cost effectively.

By outsourcing financial research services, an organisation can focus more on other key activities like idea generation, client management, revenue generation, and endeavours that can optimise its portfolio. Look for financial research service providers with the experience in increasing the profitability and quality of an organisation’s research functions. Their versatility enables them to work with IRPs, private equity partners, investment bankers, investment advisors, and asset managers. For instance, if you are the head of a sell-side research department, outsourcing financial research services can make research more beneficial and profitable by providing on-demand custom solutions. Likewise, you can rely on the services to improve market visibility, enhance the scope and depth of your coverage, and acquire new clients.

If you are a private equity partner or an investment banker, consider outsourcing financial research to a seasoned company that can help you identify emerging acquisition targets and investment themes. Make sure they can provide timely deal support and that they can work independently to give you more time to raise funds, manage the portfolio of your clients and investors, and close deals.

About the Author:
Pure Research Private Limited (Pure Research) provides customised research and business intelligence to leading corporates, public sector organisations, financial services firms, and professional services firms. The company specialises in providing high quality procurement and supply chain intelligence to CPOs and procurement professionals worldwide. Analysts from Pure Research work as an extension of its client’s procurement teams to deliver high quality insights on suppliers and supply markets. The company has offices in London, U.K. and New Delhi, India.