Barrington Partners has worked with a range of firms located or doing business in the U.S. and Europe to develop business plans, supported by our research, for the development and distribution of fund products, software systems and outsourcing services. Based on this growing body of experience, Barrington Partners has crafted a standardized process to assist firms efficiently and effectively assess outsourcing options and decisions. This process typically includes the steps listed below.

Analysis of Current State: We use a consistent, structured review of a firm’s current operating environment to map to our process matrix the key functional areas of its operation, including the process workflows, systems and resources. We collect defining data such as ‘counts of transactions’, resources engaged and quality counts, including metrics for exception handling, errors, missing data, and timeliness.

Industry Comparison: The resultant process matrix findings are matched to comparative data on industry ‘norms or best practices’ where readily available, to identify areas for attention. (More specialist products may require additional peer research to furnish data for such comparison.)

Potential Improvements: We use our in-depth knowledge of the systems and service provider solutions available in developing a range of potential options designed to bridge any identified gaps. When system solutions are recommended for further analysis, we detail:

• The scope of functionality and indicative costs of vendor solutions
• Potential benefits to quality metrics and operational costs

When outsourcing solutions warrant additional consideration, we identify:

• Profiles of relevant vendors
• The use of lift outs, and conversion experience
• The risks/rewards of outsourcing, how it may align to a firm’s ‘culture’
• Scope of services and indicative costs

Financial Models: For each identified option we develop, in conjunction with each client, a 3-5 year financial projection for comparison with the firm’s current operating model. These projections are designed to assist in determining whether follow-up / investment is justified.

For additional information on Middle Office outsourcing, please contact:
Andrew Hunter at ahunter@barringtonp.com OR +1 617.482.3305.

For additional information on Back Office outsourcing, please contact:
Hubbard Garber at hgarber@barringtonp.com OR +1 617.482.3300.