Key takeaways from the “Tech debt on the buy side” podcast
Why is tech debt important? Describes what legacy systems firms are plagued with when they cannot evolve into more capable systems. Tech Debt is technology that goes stale and as a result costs companies more without adding any value. The debt gets maintained without bringing any return to a firm.
Costs to asset managers plagued with tech debt? As tech grows stale, so does the talent available to support it. The longer you hold onto legacy systems, the more expensive it gets.
80% of asset management budgets go to just “keeping the lights on” How did we get to this point? The longer investment managers wait to update their technology, the harder it is to evolve. “Yet it’s being sustained for decades and the number keeps going up”.
You either evolve with technology or you don’t, but many haven’t because of the supposed effort to implement, integrate, or upgrade a new system—but in the long run it’s not worth sustaining old technology systems.
Refusing to upgrade your technology propagates the inability to move off of legacy systems, costing more money and time.
Enfusion provides the ability for investment managers to reimagine a new way to do business and simplify their workflows.
“Tech debt is rampant across every industry” Everyone is undergoing a transformation to see how tech can alleviate overbearing workflows dragged down by legacy systems.
Each investment manager must decide how much they are willing to sacrifice to save old technology, but should think about how much return they want from technology. Drive money towards innovative systems that will grow with your workflow.
How do you break away from quick fixes to embrace new technology? Must recognize that there is a better way of doing things, evolve your relationship with technology to better benefit the business.
0:45 – 1:50: Who/What is Enfusion, describes our systems and client base
2:09 – 3:11: What is Tech Debt? What does it mean?
3:13 – 4:48: What are the costs to maintain tech debt?
7:10 – 8:04: How Cloud native has affected legacy tech systems
9:04 – 10:20: is tech debt acute or investment management industry?
13:07 – 13:33: The goal should be to drive tech debt down to as minimal as possible
13:40 – 15:00: Embracing technology upgrades, moving away from “quick fixes”
15:09 – 15:39: Finding the right technology partner is key