Hedge fund managers look to outsource work amidst Covid pandemic

MUMBAI: Hedge funds that had seen their operational models being disrupted due to Covid pandemic have been relying on outsourcing part of their work to achieve greater efficiency.

Many hedge fund managers that saw most of the executives being stranded at home due to the pandemic have been exploring the outsourcing model, especially some part of their work.

As per a survey by KPMG, more than 70% of the hedge funds said that outsourcing part of their work may actually be more efficient.


An overwhelming 71 percent of respondents agree that the current experience of working remotely has convinced them they could achieve better cost efficiencies if they outsource some of their operations. Approximately one-in-five firms say their outsourcing decision is being influenced by employee health concerns related to returning their own people to the office environment, the KPMG report said.

“Many firms also point towards potential cost and business agility benefits of outsourcing. One-in-five firms admit they are moving towards outsourcing additional functions to better manage margin pressures. As one North American manager sensibly noted, “those that get the balance to outsourcing right will be able to scale their costs both during this disruption and going forward,” KPMG report said.