A look back at 2024 topics: IKINDI OSP Peer-to-Peer Client Forum
13.1.2025As we look back on 2024, IKINDI has been at the forefront of the transformational journey many Investments Management firms are going though as they outsource operations to Service Providers. To facilitate this transformational shift, the IKINDI Outsourced Service Provider (OSP) Peer-to-Peer Client Forum (Client Forum) was conceived to provide a safe-space for OSP clients to discuss issues and challenges faced throughout the outsourcing transformation journey. This past year saw active Client Forum engagement and enthusiastic dialog and sharing on many topics. Some of the key topics covered in the forum throughout the past year included the following:
Security Master Enrichment:
- Discussion about Service Level Agreements (SLAs) for same-day security setups and the impact of intraday trading on Service Provider Front Office system coverage.
- Challenges with data ownership for Service Providers EDM and the complexity of the transformation project.
- Need to have dedicated data oversight team and implementation of a new model for creating securities, ensuring validation and compliance.
- Discussion around clarity of the coverage model and SLA for intraday securities with OSP.
- Sharing lessons learned and best practices across member firms.
Enterprise Data Management (EDM) Implementation and Data Ownership:
- Importance of clear data governance and ownership throughout the EDM implementation.
- Complexities of consolidating information and improving overnight batch quality before adding intraday processes.
- Sharing lessons learned and best practices across member firms.
Support Model Customization:
- Need for a tailored support model to meet the specific requirements of each client, moving away from a one-size-fits-all approach.
- Multiple discussions on how to improve the commutations between the Client and the distinct groups within the OSP to handle real-time issue resolution more effectively.
- Importance of automated regression testing to streamline the change management process and ensure system stability.
- Sharing lessons learned and best practices across member firms.
System Performance Testing and Upgrades:
- Importance of performance testing especially during migrations to OSP new cloud-based platforms.
- System upgrades posed significant challenges, particularly with customizations. The need for thorough testing and a cost-benefit analysis when considering regional cycles and the impact of IBOR.
- Sharing lessons learned and best practices across member firms.
Relationship Management and Collaboration:
- Strong relationship management essential for facilitating communication and driving change across organizations. Need for seasoned relationship managers to improve communication and manage product issues.
- Collaboration among client organizations helped find efficiencies and economies of scale, enhancing the client operational capabilities.
- Sharing lessons learned and best practices across member firms.
Performance Measurement & Attribution
- Leveraging Performance Measurement perspective as the final funnel in catching issues upstream,
- Using Performance Measurement & Attribution validation processes as overall oversight of the migration.
- Upgrade regression testing coverage and quality by incorporating Performance Measurement & Attribution validation into the migration testing methodology.
Key Follow-up Items:
- The OSP data management model was a focal point, emphasizing client ownership and the flow of data throughout the OSP ecosystem.
- Focus on validating new securities and monitoring KPIs for data quality remained a priority.
- Evaluate data flows and stability, particularly with the ADP platform and its integration with internal risk databases.
Looking ahead to 2025, IKINDI is poised to continue its leadership in the investment management sector, particularly in supporting firms as they navigate the complexities of outsourcing operations to service providers.
Contact IKINDI at info@ikindi.com to join the Client Forum or for more inform