The year 2001 should have been the one that saw outsourcing take off. Yet, despite a plethora of deals in the pipeline, somewhere along the way the objective was lost. Providers, however, continue to insist that 2002 could prove to be the year that finally sees this strategy come into its own.

The big custodian banks have increasingly addressed this potentially lucrative business by establishing divisions dedicated to outsourcing. State Street set up its investment manager solutions (IMS) group in May 2001, Citibank has its advisory services group and JP Morgan Investor Services established its asset managers solutions group.