Citisoft has launched an exit strategy and planning service to help asset managers mitigate the risks of a forced or voluntary exit from an outsourcing agreement.
The UK's Financial Conduct Authority (FCA) cautioned financial services firms about the inherent risk of outsourcing their key operations in its November 2013 thematic review into outsourcing.
“Most firms believe that they have only limited resilience coverage and have not adequately considered the detailed strategy, plans, risks, costs and timescales that a voluntary or forced exit would require,” said Cosmo Wisniewski, director at Citisoft.
Citisoft has identified a defined list of the potential exit-planning options. The service will provide detailed plans, documents and a recommended governance approach to outsourcing for asset management services.
“The key point about exit planning is that it has value not only in the event that an outsourcer should fail. We consider other exit triggers, such as approaching the end of a contract or unsatisfactory outsourcer performance,” said Steve Young, CEO of Citisoft.