Asset managers hiring tech execs to streamline processes

Investment management firms have a little bit more money to spend on hiring this year, and they are using those dollars to tap technology executives who are charged with cutting costs, according to executive search firm Russell Reynolds Associates Inc. Tech-related searches made up 20% of Russell Reynolds' buy-side-firm search business so far this year, up from 10% last year. “The fastest-growing area of our buy-side work is in technology and operations,” said George Wilbanks, managing director of Russell Reynolds' investment management practice. Although five years ago, firms were looking to hire chief technology officers who could install customer relationship management systems or other tools designed to acquire clients, that is no longer the case, he said. “A few years ago, firms would take 25% of their budgets and use it to install a big CRM system,” Mr. Wilbanks said. “Now they are looking to streamline their processes and outsource more businesses to cut costs.” As such, investment management firms are hiring CTOs with experience in outsourcing and establishing a shared-services model, Mr. Wilbanks said. A lot of those people are outside the industry, he said. “So few firms in financial services have these Six Sigma black-belt executives who understand how to do that stuff,” Mr. Wilbanks said, referring to the popular business management strategy. Meanwhile, hiring portfolio managers and other investment professionals has been relatively flat this year, he said. “There are a few searches going on for international managers,” Mr. Wilbanks said. “But there are fewer searches for investment professionals than there have been in past years.”