91% of family offices predict outsourcing growth in 3 years

SAINT HELIER, JERSEY — Around 91% of family office professionals believe outsourcing will grow over the next three years, said investment firm Ocorian. 

In a survey of family office investment managers worldwide, 83% of professionals predicted that family offices want more specialized services, leading them to outsource. 

Meanwhile, 57% say the rising risk appetite of family offices globally also drives increased demand for outsourcing. 

Family offices are private wealth management advisory firms serving ultra-high-net-worth individuals (HNWI).

Ocorian Head of Family Office Amy Collins said, “Everything’s widening so much that many family offices simply can’t provide all the services that HNW families and individuals need, so increasingly – as the research shows – they need support from third parties.”

At the same time, 37% of respondents believe regulatory pressures drive family offices to turn to outsourced suppliers for support, while around 20% say outsourcing is more cost-effective.

More than seven in 10 respondents also stated that outsourcing would help them improve overall service levels, while 59% said this would allow them to focus on their core strengths. 

“The family office sector is growing strongly as more family offices are established and increasingly more family members want to play an active role in managing their assets in the most efficient way,” Collins added. 

“That applies particularly to younger family members who want access to a broader range of asset classes in addition to wanting to take more control.”