While big advisory setups have almost all functions like research and inhouse tech support, smaller outfits may find it difficult to manage everything along with client management and advisory functions. For such advisors, it is best to outsource one or more of the auxiliary functions to ensure there is no compromise in the quality of service you offer to your clients.
Suresh Sadagopan of Ladder7 Financial Advisories says that for single or two person outfits, it is more cost and time efficient to outsource research and analysis. “There are many organizations that analyse various funds and give a list of recommendations based on the criteria specified by the advisor. If you lack the manpower to do this inhouse, advisors can avail this service for a reasonable fee,” he says
Apart from research and analysis, advisors find that by outsourcing their data management services on website, they are able to save time and maintenance costs. “Initially, I maintained client data base on my website which was time consuming. Now we have outsourced everything related to our website management. This saves us time that would otherwise be spent in maintenance,” says Ritesh Seth of Tejas consultant.
Ritesh also outsources his logistics system. “I have tied up with an agency who deliver my paperwork such as nomination forms, application form and so on. In fact, they also pick up the filled forms. Since I have a huge client base, by outsourcing this job, I don't have to personally go and get the forms filled,” he says.
Virendra Singh Ranawat of MySipOnline, feels that advisors who lack technological expertise could also consider outsourcing SEO (Search Engine optimization), social media marketing and other non-core activities. “If you are from a non IT background or do not have good IT support staff, it is better to outsource such functions,” he says.
Talking about the cost effectiveness of outsourcing, Virendra says, “Subsequently you will end up paying 10 time more than outsourcing. If you are very particular about what you want, go for an in house set up. But, if you are not very particular and want good service for a reasonable price you can outsource the activity.”