While declining markets have diminished many fund companies' assets and revenues, the market conditions are a boon to many third party back-office service providers who are generating new business as funds outsource back office functions in an effort to cut costs, according to industry executives.

"We think there is more propensity to outsource right now in the current markets," said Bill Tomko, a president of investment services with The BISYS Group of Little Falls, N.J. "As markets have turned, many in the money management side are sticking to their core competencies and there is less of a focus on back office service and operations."

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