Outsourcing low-value tasks can help small licensees compete with large institutions, according to a financial services business consultant.

The move can bring access to a pool of trained and skilled manpower, improved systems and scalable resources, Seaview Consulting director David Fotheringham says.

“Growth businesses will extract significant benefit from investing in outsourcing,” he said.

The move can also provide access to more advanced technology and specialist training for licensees.

But there are potential downsides, Mr Fotheringham says.

“Unfortunately, it is not like buying a product off the shelf. Utilising outsourced resources affects the business and should be viewed as a major change program, and only after the business fully documents and understands its own business.”

He says outsourcing failures are common, with failure to adequately prepare for the change a major contributing factor.

“[Businesses] need to identify tasks to be outsourced and how these tasks are performed. When a task is outsourced, it affects how the operation is done, who does it, how the move is monitored and how supervision is applied.”

Mr Fotheringham says if outsourcing is treated as a major change project and sufficient time and resources are allocated to implementation, a successful outcome is likely.