A lack of flexibility, security and control are the top issues for wealth managers considering outsourcing their IT functions, a new study from benchmarking firm Compeer has found.

Researchers found that IT costs for wealth management firms have risen on average 8.9 percent a year since 2014, though there was an “alarming” 17.9 percent increase last year.

Compeer’s study asked whether outsourcing could form part of the solution to this mounting cost, as it interviewed a series of chief technology officers and heads of IT at firms with asset under management exceeding £5 billion. The findings were presented at Com...