Non-integrated IT struggles

SimCorp, a provider of investment management solutions and services for the global financial services industry, today announced the results of a new TABB Group study, entitled ‘The Buy-side Legacy IT Hangover: Finding the Cure for Alpha, Compliance and Growth Impediments’.

It says the survey explores the challenges to growth that Global (non-North American) firms experience based on their choice of IT strategy and follows from an identical survey conducted among North American firms in February 2016.

According to the study, there are three different IT infrastructure approaches that buy-side firms adopt. Thirty four percent of non-North American respondents in the study have opted for an integrated solution, which could include an Investment Book of Record (IBOR). Across the North American firms surveyed earlier this year, 30% had an integrated solution in place.

Almost 30% of non-North American firms – compared to 28% in North America – continue to rely on legacy systems, in many cases leading to inefficiencies in the management and trading of assets. Lastly, 27% of these same firms prefer the “best of breed” approach, where they source solutions from different providers based on the specific functionality they require, compared with 24% of North American firms.