It is wise for financial advisers to implement an outsourcing strategy sooner rather than later, and fears around client data are unfounded.
For SMEs it is natural to think that clients' data is more secure in-house or onshore, as an article in ifa argued last week.
But the reality is that outsourced providers take data security to the next level. In fact, data is more secure with outsourced providers than in-house because the majority of outsourced providers have ISO certification, cyber risk insurance, adhere to CIS standards and follow several other security protocols.
Financial planners, mortgage brokers, accountants and lawyers who are looking at increasing efficiencies and providing better customer service are starting to outsource. This trend is only going to increase and it will in a market where only 20-30 per cent of the population receives advice. If these professionals are to service more customers and provide quality advice, they ought to increase their efficiency and, no doubt, one of the ways to do that is by outsourcing.
The future of every successful professional practice will include outsourcing coupled with the right technology. Large corporates identified the benefits of outsourcing and were early movers. They have built captive centres in various strategic locations. For example, outsourcing leaders such as India have millions of people working for multi-nationals.
If you transact with an Australian bank, its highly likely that your data is being handled securely overseas, hence in saying this, outsourcing is not a foreign concept to the everyday Australian.
SME's can and should take advantage of specialist outsourcing providers who specialise in their specific industry. For those who are looking into outsourcing, here are some useful tips:
- Check if the outsourced provider has ISO 27001 certification. If yes, you don't need to worry further as obtaining and maintaining the ISO certification is harder than obtaining an AFSL;
- Check if the outsourced provider has cyber risk insurance; and
- Engage with the outsourced provider to decide on technology and design your workflows. As there are several technologies available, each limited with its functionality – it's vital not to over-complicate processes. An experienced outsourcing provider will be able to suggest useful processes and technology, if you are open to suggestions/improvements. In most cases, their suggestions will save you thousands of dollars.
Taking advantage of highly skilled resources, time difference and cloud technology are some of the basics that every business needs to incorporate.
We are in a market where there is a shortage of skilled resources. Every business will sooner or later face resourcing challenges and therefore it's wise to implement an outsourcing strategy sooner than later.
Jayesh Kasim is the managing director at Valenta BPO
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