According to a survey by Family Office Exchange (FOX) and Bessemer Trust, 71% of single-family offices reported outsourcing some of their functions to external service providers, with investment management being the most commonly outsourced function.

Deciding what tasks to outsource in your family office can be a challenging task. There are various factors to consider, such as the cost of outsourcing, the benefits of specialization, and the importance of retaining control over certain aspects of your family’s financial operations.

In this article, we will discuss some key factors to consider when making this decision for your family office.

Is the Cost Worth It?

 One of the most important things to keep in mind is the cost of outsourcing.

According to a recent report by Family Wealth Report, the cost of outsourcing for family offices typically ranges from 10% to 20% of their total operating expenses.

While it may seem that outsourcing certain tasks will save your family office money, this may not always be the case. Specialist providers often charge higher fees than generalist advisers, so it’s important to weigh the costs against the benefits.

In fact, 56% of family offices reported that outsourcing increased their costs, while 42% reported that it decreased their costs, according to Camden Wealth.

Other tasks that a family office may consider outsourcing include estate planning and asset wealth management. These activities involve understanding the family’s financial goals, developing comprehensive plans to achieve those goals, and monitoring progress over time. Having a team of experienced professionals with an in-depth knowledge of estate law, taxation rules, and investment strategies can be invaluable in helping to navigate these complexities.

Benefits of Specialization

Another key factor to consider when deciding what tasks to outsource is the benefits of specialization. Outsourcing certain activities can allow your family office to benefit from the expertise and experience of teams or individual specialists, reducing the time and effort involved with managing those aspects of your financial operations.

PwC found that 41% of family offices outsourced their investment management, and 32% outsourced their accounting and tax functions.

There are certainly benefits to outsourcing these key functions.

For example, a family office may decide to outsource their asset selection and allocation process. By hiring an experienced asset manager, they can benefit from specialized knowledge of the different types of investments available and how each should be allocated for long-term portfolio growth. This allows the family office to focus on other areas, such as strategic planning or charitable initiatives, while still having the confidence that their investments are being managed professionally.

Retaining Control

Finally, it is important to consider the importance of retaining control over certain aspects of your family office operations. It can be tempting to outsource everything in order to free up time and resources, but it’s important to keep in mind that you may not always have the same level of control over outsourced activities.

For example, if a family office outsources its investment strategy development, they will not be able to adjust or modify the strategy as needed unless they bring the work back in-house. This can be especially challenging when dealing with complex financial planning matters, such as estate planning or tax law issues.


In summary, the decision of what tasks to outsource for your family office should be carefully examined and weighed against the costs and benefits. Keeping in mind factors such as specialization, cost, and control can help you make the best decision for your particular situation. By outsourcing certain activities, your family office can free up time and resources to focus on more important matters.

By understanding the pros and cons of outsourcing, family offices can make informed decisions that help them meet their financial goals.

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