One of the common misconceptions of outsourcing is that it’s as simple as sending someone a task and voila! Its completed perfectly. Unfortunately, this is not the case because humans are involved.
So, I have put together 3 key principles to consider when outsourcing any task.
If you are looking for long term outsourcing, you need to find the right people to partner with. In financial planning for instance, there are thousands of Paraplanners who are qualified and have years of experience however, this narrows down very quickly when considering their availability, their actual skill level and willingness to work with you.
Consider ‘try before you buy’ where you test out a few plans with suitable candidates and then decide who is the best match for you.
Generally, there are two types of outsourcing options – onshore and offshore. Be prepared to pay close to double the price (Super and Risk SOA: $270 offshore, $550 onshore) if you want to work with an onshore Paraplanner. One of the obvious reasons for this is the fact that wage costs are a lot lower offshore. But be careful because you may find ‘you get what you pay for’ and the cheapest option isn’t necessarily the best, especially if you are investing more time training than you would the higher priced services.
In addition to the above, you need to consider other services that may bear a cost such as a quick turnaround, projections, product comparisons etc.
When a new client mentions to me that they have had so much trouble with other outsourcing companies, a red flag is raised. To me, this says a lot more about the Adviser than it does the outsourcers.
Outsourcing isn’t just a ‘tick and flick’ exercise. Just like any staff member, it will take time for them to get to know how your SoA’s are produced, what your preferences are and what an ideal SOA looks like to you. Be prepared to invest time with clear communication of expectations, give them sturdy resources such as templates and examples and be patient with them while they learn.
If you have done all of these things and still no improvement, then it’s safe to say that you don’t have the right Paraplanner.
One of the most important things outsourcing companies can do for new clients is set clear and realistic expectations. Only a unicorn Paraplanner will produce the perfect SOA from day dot so unless you have a thorough, step by step documented process, spot on templates and training resources a newbie would die for, you will need to lower the perfection expectations and work together for the best outcome.