Global investment services firm JP Morgan & Co Investor Services has outsourced its core accounting application in a multimillion dollar agreement to improve the firm's operational efficiency.
Under the 10-year contract, awarded to Australian investment technology solution developer DST International, the firm will implement DST's, HiPortfolio software system, initially for back-office operations in its trans-Tasman branches.
The integrated solution will allow the company to refine its back and middle-office, expand its range of accounting services and provide an effective outsourcing option to institutional customers, JP Morgan sources said.
JP Morgan chose the system because the platform provided high levels of functionality, the company's business executive for investor services Australia and New Zealand, Graeme Arnott, said.
Specifically, Arnott said the solution suited the Australian marketplace because of its ability to meet the local industry's regulatory standards. The company is also considering implementing the solution across its Asia-Pacific operations, depending on the regional market's specific technology needs, he added.
The firm plans to purchase more DST solutions to better manage an expected period of significant business growth over the next few years, including the Open' product suite which includes a relational database, reporting and performance tools and a straight-through processing tool, OpenMessenger.
JP Morgan's progression to STP was driven by the need to minimise the rework of its data, Arnott said.
The companies refused to disclose the exact value of the deal, citing commercial sensitivity.