Majority of SFOs in Singapore outsource business functions

One of the business functions SFOs outsource is IT (77%).

The majority of single family offices in Singapore typically outsource functions such as IT, human resources, and tax, data from Simon & Kucher showed.

The report found that 69% tap third party vendors for tax functions and more than half (51%) also outsource payroll and recruitment activities annually instead of hiring dedicated HR staff.

Simon & Kucher said SFOs prefer to outsource HR and tax functions to niche providers given the seasonality of business ascites and cost efficiency of outsourcing.

The report also found that seven in 10 SFOs outsource their IT.

“We observe an emergence of technology vendors in Singapore offering innovative managed services packages to support the administration of family offices,” the report said.

“These packages typically include support in areas such as cybersecurity, data aggregation,and portfolio analytics,”  the report added.