In trying to determine if one or more outsource solutions are right for your firm, it is wise to do your homework. Doing a cost-benefit study, with comparisons to the costs incurred by providing those same services in-house, could be revealing.
However, it is important to also fairly weigh differences in the client service experience and what impact that might have on your practice. Ultimately, the goal may not be simply to save money, but a combination of providing a higher level of service with lower costs and outsourcing certain aspects of your financial practice that you either do not do well or would rather not do, freeing you to focus on those things that you do well. For some advisors, this translates into more face time with the client. For others, it may mean freeing up existing staff from mundane tasks to concentrate on higher level (analytical) work without constant interruptions. In either case, if chosen wisely, outsourcing should result in a more efficient and productive financial practice.
David L. Lawrence, Ph.D., is founder and president of Efficient Practice, a consulting firm that provides financial practices, broker-dealers and independent firms with comprehensive, profit-driven efficiency consulting and resources. For details, visit www.efficientpractice.com.