The study confirms the tremendous rise of the wealth management industry and explores the new challenges wealth managers are confronted with in the face of greater competitive pressure and customer demands. As wealth managers seek to provide superior service to their clients, they are faced with the challenge of focusing on their core activities, while at the same time maintaining and streamlining their operations. Competitive edge can be lost easily by even minor lapses in either area.

Outsourcing presents a great opportunity for wealth managers to leverage the expertise of service providers and to farm out non-core functions. The enthusiasm towards outsourcing prevalent in the industry is because wealth managers get superior efficiencies in their current areas of concern - Middle and back office functions while they focus on their core competencies of providing better services to clients.

Wealth managers can ensure success of outsourcing relationships by ensuring a stringent service provider selection program based on service providers' processes, quality standards, cost efficiency and knowledge of the wealth management industry. Proper service provider management can create a win-win situation for both parties where they reap benefits of this present and growing opportunity.