Fri, Jan 22, 2021
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. SPACs: Jeremy Grantham: "SPACs should be illegal", Spacs may fuel European IPO boom, SPAC IPOs surge, The SPAC pop is now a thing: More unicorns getting on board, Paysafe readies $9bn IPO Via SPAC[more]

    Jeremy Grantham: "SPACs should be illegal" Special-purpose acquisition companies (SPACs) should be illegal, according to Jeremy Grantham, as they escape regulatory oversight and encourage the "most obscene type of investing." Grantham is the co-founder and chief investment strategi

  2. News Briefs: What if data scientists had licenses like lawyers?, Next generation behind family offices' ESG push[more]

    What if data scientists had licenses like lawyers? From Bloomberg: Data scientists, if they're poorly qualified or act irresponsibly, can do at least as much damage as lawyers and doctors. The algorithms they create can ruin lives, aggravate social divisions, even facilitate genocide.

  3. SPACs: SPAC costs are 'far higher' than previously realized, study finds, Jim Cramer recommends profit taking in speculative electric SPAC names.[more]

    SPAC costs are 'far higher' than previously realized, study finds From Institutional Investor: The costs of going public via a special-purpose acquisition company are both "opaque and far higher" than previously recognized, new research shows. SPAC shares tend to drop by one third or

  4. Institutional Investors: Pensions swamped in a sea of negative real rates, Bahrain's pension fund authority faces collapse[more]

    Pensions swamped in a sea of negative real rates From FA Mag: Defined-benefit pension plans were already barely treading water heading into 2020. In the years ahead, the risk is as great as ever that a large swath of them will drown. As the name implies, defined-benefit pensions promis

  5. New Launches: Lesser-known Tiger Seed launches long-only fund, Bill Gates-led fund raises another $1bn to invest in clean tech, Claret Capital strikes initial close for first fund since spinout from Harbert[more]

    Lesser-known Tiger Seed launches long-only fund From Institutional Investor: A hedge fund whose largest investor is Julian Robinson Jr.'s Tiger Management has launched a long-only fund as part of a larger reshuffling of its investment vehicles. Tiger Legatus Capital Management, a so-ca