Citing cost (73%), disparate technology systems (62%), and regulatory oversight (52%) as operating challenges, managers seek to deploy solutions that enable scale and efficiency. "Maintaining an operating model that is sustainable has become challenging due to growing regulatory burdens and by the breadth of products being offered by firms," states James Tamposi, associate director. "More than ever, managers are interested in creating systems and infrastructure that enables them to operate more effectively," he adds. As asset managers consider the future state operating model, the main factors driving their decision to outsource are improving productivity and leveraging external capabilities.