Outsourcing noncore tasks allows multifamily offices (MFOs) to boost efficiency and focus on strategy.
Key takeaways
Cybersecurity outsourcing helps MFOs manage risk and access highly skilled and focused advisors.
Strong trust, transparency and cultural fit are vital for lasting effective outcomes.
As RSM’s family office managing director, Adam Lurie has witnessed firsthand the evolving landscape of outsourcing for MFOs. In a recent conversation with the Family Wealth Alliance, Adam shared his perspective on how outsourcing, co-sourcing and insourcing are shaping the future of MFO operations. Here is a summary of that discussion.
Choosing the right support model: Insourcing, outsourcing or co-sourcing
Today’s MFOs face a complex set of choices when supporting growth and streamlining operations. Depending on their core competencies and daily needs, firms can insource, outsource or co-source.
Insourcing means hiring staff internally, while outsourcing gives firms access to talent and technology on a part-time basis, reducing costs and avoiding long-term staffing commitments. Co-sourcing, a lesser-known hybrid, brings in third-party professionals to handle routine tasks while in-house employees work alongside them. This model combines external capabilities with on-site support, freeing family office teams to focus on strategic priorities.
Ultimately, the right path requires a critical assessment of the firm’s operating model and structure. MFOs should evaluate every dimension of their business and prioritize flexible, nimble solutions.
Trends in outsourcing: Cybersecurity and beyond
At RSM, one of the most significant trends we see is the outsourcing of cybersecurity and information technology. The depth of knowledge required in this area is immense, and it’s often impractical for MFOs to maintain all necessary skill sets in-house.
Outsourcing or co-sourcing IT including cybersecurity enables firms to minimize risk, access specialized talent and keep staffing costs manageable. Reducing the overall risk in this area is critical for all constituents, and gaining a proactive stance that allows for events to be managed and contained is paramount to an overall protection and risk strategy.
Other areas ripe for outsourcing include:
- Finance and accounting
- IT systems
- Human resources and payroll
- Tax
These are essential functions but not typically core to a family office’s strategic growth. By outsourcing these tasks, MFOs can focus their internal teams on strategic initiatives and client satisfaction.
Deciding what to outsource
The decision to outsource hinges on whether a function is a core competency. If a skill is central to the firm’s growth and operations, it should be developed internally. Conversely, tasks that are readily available in the marketplace—especially those that are routine or mundane—are prime candidates for outsourcing or co-sourcing.
RSM encourages MFO clients to dig deep, understand their core competencies and leverage the market for areas where external expertise can add value without the need for ownership.
Outsourcing in growth mode
Rapidly growing family offices face unique challenges. Growth can be a heavy burden, and missteps in hiring or resource allocation can be costly. Outsourcing and co-sourcing provide valuable leverage, allowing firms to scale efficiently without overcommitting to payroll or risking high turnover.
It’s essential to align people, processes, data and technology, engaging advisors and thinking critically about which roles to fill internally and which to source externally.
When to reevaluate outsourcing strategies
There’s no universal trigger for reevaluating outsourcing strategies—every firm’s journey is unique. However, common catalysts include:
- Leadership transitions or retirements
- Technology upgrades or system changes
- New reporting or data requirements
- Talent shortages
- Business acquisitions or divestitures
- Generational transitions within the family
- Shifts in family dynamics or tax focus
Strategic leadership must remain vigilant, ready to flex in and out of outsourcing as the business environment evolves. When considering a service provider, keep in mind that cultural fit is paramount. Successful collaborations depend on shared values, mutual understanding of mission and goals, and deep relationships—not just invoices and deliverables. Transparency and trust (the two Ts) are essential for long-term success.
I’ve seen firms succeed by prioritizing transparency and trust from the outset. Upfront discovery and relationship-building set the stage for effective partnerships, ensuring that both service provider and MFO remain aligned on strategy and vision.
The takeaway
Outsourcing offers MFOs the flexibility and leverage needed to thrive in a dynamic environment. By critically assessing core competencies, engaging trusted partners and remaining adaptable, family offices can position themselves for sustainable growth and operational excellence.
RSM contributors
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Adam LurieDirector
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