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The key reasons for relying on outsourcing is that it enables managers to launch different product sets and to be faster to market, Ocorian's study with private equity, private debt, real estate, venture capital and infrastructure fund management executives in the US and Canada responsible for $1.591 trillion assets under management found.

Use of third party administrators is particularly prevalent in the European fund administration arms of North American firms, the research found. Almost all (94%) questioned use third-party administrators to some extent for fund administration including depository, SPV, AIFM and fund accounting.

Just 6% do all fund administration inhouse while 17% use multiple third party providers alongside inhouse teams and 18% use a combination of inhouse and one third party. Around two out of five (42%) use a number of third party providers while 17% rely on just one.

Ocorian's research found fund managers narrowly prefer to work with one provider when they require more than one service for their European funds with 35% opting for one provider while 33% preferred to work with multiple providers. Around 14% have no preference while 18% look to a mix of outsourcing and inhouse.

That is partly reflected in the one of the reasons for the rise in the outsourcing services identified by the study - reducing costs which was selected third ahead of greater transparency in reporting and expertise in jurisdictions.

Reducing regulatory risk was ranked seventh ahead of the ability of outsourcing to help deliver stronger fiduciary management of funds and greater independence.

Michael Gull, Head of US Funds Sales, at Ocorian, said: "Outsourcing plays a major role in fund management and from the findings of our research appears set to only become more important in the future. Fund managers I work with value the range of services third party providers offer and are seeking increasing levels of support.

"That is particularly the case when managers from the US and Canada are launching new funds in Europe. Almost all questioned in our survey make some use of third party support and very few keep their operations inhouse and our experience tallies with these findings. The expertise and peace of mind experienced outsourcing partners provide allows managers to focus on creating greater value for their own investors and placing the onerous operational tasks to their administrative partners."