What Do I Outsource to Service Partners?

We spoke to over 70 CFOs managing alternative asset portfolios in the last month (our personal monthly record), and the one consistent question was “why can’t we outsource all the record keeping on Deals and Activities in our portfolio? The outsourcers have the technology and the resources. We just need to know about our returns, which we track.”

Outsourcing does provide tremendous benefits, including lowering costs and lower overheads. But who does it work for?.

Imagine building a new NBA franchise, which you want to take all the way to the Finals.

You can decide you never want home court advantage, because you don’t need the cost of building a new arena; that can be outsourced. And you don’t need the fanbase, we can outsource them too! It’s way less expensive.

The portfolio that you are managing is the NBA franchise and all the data that the portfolio generates is pretty much the fanbase. Decide whether you as the manager outsources his valuable data, or pampers it.