Family offices are set to outsource more key services as pressure builds from clients for a wider range of support and more sophistication, new research from Ocorian, the provider of administrative and compliance services for financial services firms, shows.
Ocorian surveyed more than 130 family office professionals responsible for around $62.45bn in assets under management.
The survey found that 91% say outsourcing will grow over the next three years with 28% predicting a dramatic increase, while just 3% believe outsourcing will decrease.
The key reason for increased outsourcing identified by the research from Ocorian is pressure from family office clients for more sophisticated services.
Around 83% of family office professionals predicting an increase in outsourcing say family offices want more specialised services.
However, 57% say the rising risk appetite of family offices globally is also driving increased demand for outsourcing.
Nearly two out of five (37%) believe regulatory pressures are driving family offices to turn to outsourced suppliers for support, while around one in five (20%) say outsourcing is more cost effective.
The research found family offices already make extensive use of support from third parties. Nearly two out of three (63%) say they use third-party support on illiquid assets such as private equity and nearly half (48%) receive support with liquid investments.
