Eze Blog | SS&C Eze

Fewer, Better Outsourcing Relationships | SS&C Eze

Written by Steven McGill | Nov, 26 2024

We recently wrote about the advantages investment firms gain by establishing successful, sustainable outsourcing partnerships, including improved costs, risk management, and scalability. After understanding all of these benefits, it can be tempting to seek a vendor for any and all outsourcing opportunities.  

However, while the benefits of outsourcing are undeniable, more vendors don’t always mean more efficiencies for the firm.  

The Pitfalls of Over-Outsourcing 

As their number of outsourcing relationships grows, many firms find that managing a range of third-party vendors becomes complex and time-consuming. Finding, vetting, and overseeing numerous vendors consumes significant resources – eroding the efficiencies desired in establishing these outsourcing relationships. 

Furthermore, with different vendors working in silos, it becomes difficult to achieve a cohesive solution – or a holistic understanding of your firm’s operations. This fragmented outsourcing landscape can hinder collaboration, integration, and agility.  

A Smarter Approach: Rationalizing Your Outsourcing Partnerships 

To realize the promised value of outsourcing, firms should focus on building fewer, stronger relationships with trusted vendors. By consolidating outsourcing needs with a limited number of providers, you can streamline processes, reduce costs, and improve visibility. 

One effective strategy to do this is to leverage existing vendor relationships. Partnering with an existing provider for outsourcing services offers several advantages: 

  • Faster Onboarding: Working with an existing vendor expedites onboarding – simplifying the due diligence and contract management processes and minimizing disruptions to your operations.  
  • Enhanced Visibility: By aligning more of your operations under a single vendor, you gain a more holistic understanding of the state of your business and operational landscape.  
  • Cost Savings: Consolidating services with an existing provider can lead to significant cost savings through economies of scale and bundled offerings. 
  • Simplified Oversight: Managing a single vendor relationship reduces administrative overhead and improves efficiency.  
  • Increased Collaboration: Choosing an existing partner for outsourcing allows your provider to gain a deeper understanding of your business and better anticipate and address your evolving needs.  

Strategically leveraging existing vendor relationships offers firms a compelling path to optimizing outsourcing initiatives and overall operations. 

Quality Over Quantity  

While outsourcing can be a powerful tool, it's essential to adopt a strategic approach. By centralizing outsourcing partnerships with a few trusted vendors, you can unlock its full potential and drive sustainable growth for your business.  

For over 35 years, SS&C has been a reliable partner for firms looking to optimize their investment operations. With end-to-end investment technology applications, architecture, and a flexible range of front-, middle-, and back-office managed services, SS&C is a single vendor for all of your outsourcing and operational needs.  

SS&C’s strategic outsourcing experts act as an extension of your team, seamlessly handling short- and long-term operational processes within your existing SS&C technology platform.  

If you’re ready to optimize your outsourcing strategy, speak with an expert today. Or learn more about the factors that contribute to successful outsourcing and how you can apply them to benefit your firm in our guide, Partnering for Success: The Art of Strategic Outsourcing.