Published on February 25, 2025 by Priya Vaidyanathan and Nuwan Jayawardana CFA
Scaling operations while maintaining service quality is often a significant challenge, particularly for midsize asset managers. Outsourcing addresses this challenge by offering a flexible solution, enabling these asset managers to quickly scale up or down based on demand, without making significant changes to internal resources or infrastructure. This flexibility would be particularly valuable in navigating periods of high growth or market volatility, when the ability to rapidly adjust capacity would be a critical competitive advantage. By entering into a strategic partnership with an outsourcing provider, an asset manager could achieve this scalability and flexibility in a cost-effective and low-risk manner.
Outsourcing is a strategic solution for managing growth and volatility without compromising quality.
The asset management sector is at a crossroads, with a need for transformation due to structural challenges intensified by rapid advancement in AI technology. AI has the potential to transform the sector by offering powerful tools for enhanced operational efficiency, client engagement and risk management. However, most AI solutions will take significant time to perfect, in addition to the substantial investment required. Therefore, as we approach 2025, it is clear that AI alone is not sufficient. Successfully executing AI-oriented solutions will require an inclusive approach, combining talent development, strategic partnerships, robust governance and stronger data infrastructure.
Read the full outlook for Asset Management 2025 here.
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About the Authors
Priya has over 20 years of experience in equity research and financial auditing. At Acuity Knowledge Partners, she currently manages client relationship and delivery for leading private banks. She has been with the company for over 19 years and has led teams in sell-side and buy-side engagements. She previously worked at Ocwen Financial Services and as an auditor at Deloitte. Priya is a Chartered Accountant and holds a Bachelor of Commerce degree from Bangalore University.
Nuwan provides global leadership to the traditional asset management segment within the Investment Research Buy-side business unit. As a senior leader in Acuity Knowledge Partners’ (Acuity’s) Sri Lanka delivery centre, he provides oversight to the Buy-side research teams, including resource management.
Nuwan also spearheads the Colombo University Outreach programme, bringing Acuity’s global expertise to Sri Lanka’s brightest minds.
His journey started over 20 years ago as Sell-side Equity Analyst covering the mortgage-backed securities sector. After seven years in the domain, he moved to fixed income research to expand Acuity’s credit research franchise in the Sri Lanka delivery centre. Subsequently, he was appointed Head of fixed income, focused on..Show More
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