“The strongest software solutions provider partnerships are built on shared outcomes, not signed contracts.”
Over my three decades in the investment management industry, I’ve worked across operational teams covering a variety of back-office functions, including custody, fund accounting, post-trade compliance, expense administration, financial reporting, and regulatory reporting. Additionally, I spent seven years on the software solutions provider side of the business helping firms modernize and scale their operating models. Those experiences have given me a unique perspective and deep appreciation for the role technology plays in enabling firms to operate effectively. They’ve also reinforced one belief: the best relationships don’t feel like vendor relationships at all — they feel like partnerships.
In the investment management industry, technology now touches virtually every part of the operating model. Whether work is performed internally by an asset manager or delivered by a third-party administrator, the ability to operate efficiently, accurately, and at scale is increasingly shaped by the broader ecosystem of platforms, providers, and service partners that support the business.
Yet too often, the relationship between software solutions providers and their clients remains largely transactional. Providers sell software, clients purchase licenses, and meetings focus on service issues, enhancement requests, or commercial terms. The relationship may function adequately, but it rarely reaches its full potential.
In my experience, the organizations that achieve the greatest value from their software solutions provider investments and build the best future-state operating model approach these relationships differently.
They build partnerships!
Why Partnership Matters More Than Ever
Operations teams supporting the investment management industry face rising pressure from fee compression, growing client expectations, evolving regulation, new product complexity, and AI-driven change. These days, leaders are being asked to deliver more reporting, oversight, innovation, and responsiveness — often with the same or fewer resources. In that environment, efficient operating models matter more than ever, and trusted partners become significantly more valuable than purely transactional vendors.
The goal isn’t simply to reduce costs at all costs. It’s to create a future-state operating model that allows talented people to accomplish more by using the tools available to them more effectively. And because the pace of change continues to accelerate, having a trusted partner to help navigate that change can make a meaningful difference.
That accelerating pace of change is being driven, in no small part, by artificial intelligence. As AI rapidly reshapes the investment management industry, firms are being challenged to rethink long-established operating models while evaluating an unprecedented pace of innovation. Success will depend on more than simply adopting AI — it will depend on applying it thoughtfully, responsibly, and in ways that create measurable business value. That makes strong partnerships even more important. Software solutions providers bring visibility into emerging technologies, evolving best practices and lessons learned across the broader market, helping clients make more informed decisions as they modernize their operations.
What the Best Partnerships Look Like
The strongest partnerships I’ve experienced have always been built on transparency. When I led operational teams, I invited key software solutions providers into broader conversations about strategy, growth, staffing pressures, and business goals — not just discussions about product and product issues. In return, the best providers were transparent with me, sharing more than roadmaps. They offered visibility into their leadership, priorities, investments, and long-term vision. That kind of mutual transparency creates alignment, strengthens trust, and opens the door to more meaningful collaboration.
An Opportunity to Take a Different Approach
Companies miss out on an opportunity to have another trusted, credible, and qualified voice at the table when they wait until a problem is fully defined before involving a software solutions provider. By that point, the conversation is often narrowed to a specific issue rather than the broader business context. When clients share challenges, priorities, and desired outcomes earlier, providers are better positioned to contribute insights that go well beyond software functionality and help create a best-in-class, future-state operating model.
Partnership begins when both parties understand the totality of the business, not just the tools being used to help achieve goals today.
A Lesson I’ve Learned Firsthand
I’ve seen this firsthand. When staffing pressure increased and the teams I led were being asked to do more, strong partnerships made it easier for me to engage providers not only for training, but more broadly to help look at the business. Instead of simply pointing us toward documentation or training materials, my software solutions providers brought in subject matter experts to conduct operational reviews alongside my teams. Together, we evaluated workflows, usage patterns, opportunities for optimization, and areas where we could achieve greater efficiency.
We were able to identify workflow improvements, uncover underused capabilities, and find practical ways to create more value from existing technology investments. That approach and transparency were just the start of building a true partnership.
That, to me, is what real partnership looks like.
All Business is Personal
As I ascended to higher management roles throughout my career, one thing I learned is that all business is personal. Today, with more than three decades in this business behind me, I believe that more than ever.
While we all represent companies, we’re ultimately people working with people. The strongest partnerships are built on credibility and trust. Contracts, service levels, and governance still matter — but trust makes them work better.
Final Thoughts
The investment management industry is under pressure to operate more efficiently, adapt more quickly, and deliver more value than ever before. Technology will play a critical role in that evolution, but technology alone isn’t enough. The organizations that will be best positioned to succeed won’t simply have the strongest tools — they’ll have the strongest partnerships supporting how those tools are applied to deliver meaningful business results.
When providers and clients align around shared outcomes, they create something more valuable than a traditional vendor relationship; they create a partnership capable of navigating change, solving problems, and building ever better solutions, all of which help to create long-term value together.
In future blogs, I’ll explore why those partnerships are such an important part of creating and maintaining a future-state operating model and the importance of doing so.
