One speaker, who represented a portfolio analysis company, said that future IT departments will focus more on third-party technology management, altering their roles from in-house providers to external managers.
He said that asset managers would rather partner with third parties that focus purely on analytics and systems, rather than build their own. As a result, IT departments will shrink over the next 10 years.
“It’s a big shift in those skillsets, it doesn’t mean they won’t exist, but just in a very different capacity. It’s no longer their business to run technology,” he said.
The internal IT department will shift from building and managing the system to managing those partners, he said.
He added that asset managers would rather focus on alpha, instead of worrying about upgrading “legacy” systems.