Companies are increasingly outsourcing operations and expanding their investment strategies to navigate rising economic and geopolitical risks, according to global research from Ocorian, a provider of financial and corporate services.
More than half (52%) of firms, including major corporations, asset managers, family offices and wealth managers, say they have broadened their investment focus to mitigate risk. Nearly half (49%) report outsourcing more functions to third-party specialists with the expertise and scale to manage today’s shifting landscape.
The study, which surveyed senior executives across the EU, UK, US, Canada, South Africa, Asia and the Middle East, found that 60% of firms plan to increase outsourcing over the next 18 months, highlighting a long-term shift toward external expertise. Additionally, 48% of respondents plan to boost investment in their businesses, while 34% are considering M&A activity and 23% are looking to expand into new geographies or sectors.
However, not all firms are in expansion mode — 26% expect to decrease investment and M&A activity, indicating a divide in sentiment as companies weigh economic uncertainty against potential opportunities.
Geopolitical tensions push investors to eye emerging markets
The research also explored the impact of recent elections on various industries. Respondents believe that the banking sector will benefit the most, with 71% expecting a positive impact. The insurance industry is also viewed favourably, with 51% predicting gains, while industrial goods and services are expected to see similar benefits.
Conversely, the oil and gas sector is expected to be the least positively affected, with only 18% of respondents anticipating favourable outcomes. The findings suggested that political shifts are playing a crucial role in shaping corporate strategies and investment decisions.
Charlotte Cruickshank, global head of onboarding and solutions at Ocorian, commented: “Rising geopolitical and economic tensions have posed problems for companies worldwide to solve, and key to that has been seeking support from third-party specialists and diversifying their investment focus.”
She added: “It is clear that outsourcing of more operations and working with specialist third parties will continue to trend over the next 18 months as companies look to protect themselves from economic and geopolitical issues that significantly impact decision-making.”
Ocorian’s newly launched Global Asset Monitor provides further insights into how public and private markets are evolving, particularly as private assets have grown nearly three times as fast as public assets over the past 15 years.
