The ‘Great Resignation’ has had big impact on hedge fund IT management strategies with 87% of firms looking to increase outsourcing due to high employee turnover and increased labour costs, according to the latest edition of Hedge Fund Managed IT Trends Report from IT and cybersecurity provider Agio.
The report, which is based on a survey of over 100 hedge fund practitioners spanning the technology, operations, cybersecurity, compliance, and finance fields, exploring how economic and employment trends are shaping their technology management practices and preferences, also reveals that 55% of firms that currently outsource their IT intend to increase outsourcing due to inflationary pressures.
Firms that currently insource their IT management also unanimously (100%) said they would look to outsource over the next two years. The primary drivers to outsource for these firms were to reduce total cost of IT ownership, scale operations cost efficiently, and offset the loss of in-house talent and skill.
The report also found that those funds that will expand their existing outsourcing efforts want cloud management and support (75%). Migrating to the cloud is a significant part of the story as firms look for ways to cut costs while building better end-user support, increasing security for remote workers, and scaling IT operations efficiently. Public and multi-cloud solutions address those concerns, giving organisations improved security, resiliency, and availability while also improving cost efficiency.