Wed, Jan 23, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Private Equity Strategies

Data Snapshot: Private Equity CTOs Add Outsourcing, Increased Security To Priority Lists

Thursday, March 02, 2017

By: Bailey McCann, Private Equity Strategies

The role of the private equity CTO has changed significantly. New technology along with a growing list of cybersecurity threats have placed more demands on the IT department than ever before. According to a new survey of private equity CTOs from Eze Castle Integration, these demands have led to an evolution in the role of the CTO away from simply maintaining hardware and workflows and into making the CTO an integral part of information security and compliance support.

For 2017, respondents to the survey said that their key priorities were cybersecurity, improving customer experience and updating older technologies. Outsourcing some business functions and technology infrastructure to cloud services providers and others also made the list in a big way, with firms looking to outsource a variety of operations.

None of this comes as a surprise to Eze Castle’s Chief Strategy Officer, Mark Coriaty. He says that private equity CTOs have been looking to companies like Eze Castle for those new technologies as well as guidance on how best to implement them.

“Outsourcing has grown significantly over the past three years. Firms are looking for guidance, advice and managed services capabilities,”Coriaty tells Private Equity Strategies. “Private equity firms, specifically, are looking closely at how they manage and maintain data securely. Many firms lack a centralized data source. We can provide a private cloud that allows for centralization and data management.” He adds that Eze Castle also works with CTOs on a consulting basis to help them learn about best practices for information security and maintaining compliance.

The figure below outlines what CTOs are likely to outsource over the next year:


In addition to outsourcing, private equity firms are also looking for ways to implement cloud services. Cloud technology can allow firms to scale up in size rapidly, while maintaining security. Working with a cloud services provider also eliminates the need for sprawling and complex networks of hardware.

According to Coriaty, most private equity firms are working in a private cloud environment, but some have started to consider a partially public cloud -- also known as a hybrid cloud - when they work with counterparties to ensure consistent security throughout processes. Over the long-term Coriaty expects that firms will continue to explore ways that they can outsource basic business operations in order to cut costs and free up investment staff to focus on deal making.

Even as CTOs split some of their duties with third party technology providers, the role of the CTO is likely to become more important and demanding over time. Data in the report shows that the CTO is taking on a more strategic position within private equity firms and will be asked to contribute more heavily across in the organization. See the figure below for how the role of the CTO is expected to evolve over the next year. More information on these trends is available in the full report here.


 
This article was published in Opalesque's Private Equity Strategies our monthly research update on the global private equity landscape including all sectors and market caps.
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies


Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. News Briefs: The Jeff Bezos divorce: $136bn and Amazon in the middle, Bridgewater Associates partners with consulting firm, Cyprus no longer Mediterranean haven for Russian businesses, Goldman Sachs on course to launch cash management in mid-2020[more]

    The Jeff Bezos divorce: $136bn and Amazon in the middle From Mint: The announcement by Amazon founder Jeff Bezos, the world's wealthiest man, and his wife that they will divorce has captivated the imagination -- how will they split his giant fortune, estimated at $136 billion? And what wi

  2. Institutional Investors: Institutional investors plot large property allocations, Qatar Investment Authority aims to reach $45bn in U.S. investments, Louisiana Teachers assigns $200m, SoftBank move to slash WeWork investment sends shockwaves[more]

    Institutional investors plot large property allocations From FT: Institutional investors plan to make large allocations to property in 2019, taking them closer to their desired targets. At least €72.4bn of new capital is expected to flow into real estate this year, according to a

  3. Legal: Attorney sues after Tampa hedge fund goes under, Hedge funds showing increased interest in litigation claims, Argentina sued again by hedge fund on bonds tied to GDP growth[more]

    Attorney sues after Tampa hedge fund goes under A Tampa hedge fund company may be in legal trouble after the firm that was holding its money was sued by a lawyer who claimed "gross negligence" caused the fund to lose tens of millions of dollars. James Cordier, the head of optionseller

  4. Activists: MGM hands board seat to activist hedge fund Corvex's Meister, PG&E shareholder BlueMountain challenges bankruptcy plans, Gulfport pledges share buybacks after hedge fund demand, PPG Paints itself into a corner[more]

    MGM hands board seat to activist hedge fund Corvex's Meister From Reuters: MGM Resorts International has struck a deal with hedge fund Corvex Management's founder, Keith Meister, to give him a board seat, one week after a rival activist investor was seen building a position in the casino

  5. Opinion: Can you beat Warren Buffett's investment returns using data?[more]

    From Seeking Aplha: The ideal hedge fund portfolio would use leverage to take a variety of uncorrelated risks that all cancel each other out, leaving the fund with little to no net exposure. For example, if you could invest in enough items with no correlation to the business cycle, like earthqua