RIMES, the award-winning provider of managed data services for the buy-side, recently commissioned Forrester Consulting, one of the market leading globally recognized research and advisory firms, to conduct a Total Economic Impact study on using RIMES Managed Data Services (MDS). The study is titled “The Total Economic Impact™ of RIMES Managed Data Services.”
Data management is moving up the boardroom agenda, driven by a perfect storm of competing priorities. Buy-side firms are facing increasing client pressure for greater investment in larger, customized data sets, the need to meet more stringent regulatory requirements and a challenge to reduce operational costs. However, little has been done to accurately calculate the total cost impact of data management at their firms.
Applying Forrester’s proven Total Economic Impact (TEI) methodology, RIMES can calculate the return on investment and payback timescale for investment management firms using its managed data services. Indicative of the scale of the challenge, the net present value of implementing RIMES Managed Data Services for an indicative composite organization (constructed by Forrester from aggregated RIMES client feedback) is $3.6m across a 3 year period.
Steve Cheng, Global Head of Data Management Solutions, RIMES says: “The feedback we have from investment managers is that they often lack the necessary insight to fully understand the total economic impact of data management across their firms.
“We commissioned Forrester to create a framework that addresses this pressing challenge and to dispel the myth that data costs relate to data vendor fees alone. With hidden costs ranging from managing data quality issues and consolidating disparate data sources, through to shadow investment in data validation and an inability to respond to client demand for new products, it is critical to have a tool that captures all of the outlays associated with data management.”
According to the study: “Prior to implementing RIMES MDS, clients were facing data quality and data timeliness issues. Their performance and data operations teams were spending a significant amount of time on data validation and remediation in the face of these errors, in addition to ongoing data operations.
“With RIMES MDS, performance analysts were able to improve their productivity by as much as 20%, and the composite organization experienced additional savings in terms of productivity gains, cost avoidance of additional headcount, resource savings, data delivery cost reductions, and savings on legacy vendor services fees.”15
- 2020 and Buy-Side Compliance: A Year of Awakening and Investment
- ETF answers from our experts
- RIMES Launches Unique Index Identifier to Give Investment Management Firms the Data Insights They’ve been Unable to Access Until Now
- Data Supply Chain Optimization Within Investment Management
- Market Surveillance Automation: Delay No More