In today’s competitive financial industry, controlling costs while maintaining service quality is more important than ever. Whether you’re a boutique advisory firm, fintech startup, or an established institution, staffing is one of your largest expenses and one of your biggest opportunities for efficiency.
At Veda Outsourcing Solution we help financial service businesses reduce overhead, increase productivity, and remain agile through tailored outsourcing solutions. In this blog, we break down the true cost of in-house staffing versus outsourcing and why more financial firms are making the shift.
The Real Cost of In-House Staff
On paper, hiring an employee may seem straightforward: offer a salary, train them, and get to work. But the true cost includes far more:
Salary & Benefits
- Competitive salary (often inflated in financial hubs)
- Health insurance
- Superannuation contributions
- Paid leave
- Bonuses
Hiring & Onboarding Costs
- Recruitment fees
- Advertising job posts
- Interview time and lost productivity
- Background checks
- Onboarding and training resources
Office & Infrastructure
- Desk space, equipment, licenses, software
- Utilities and office overhead
- IT support
Turnover & Risk
- Attrition costs (re-hiring, retraining)
- Compliance risks and downtime
Estimated total cost of a $70,000 salaried employee? Often upwards of $100,000–$120,000/year.
The Cost Advantage of Outsourcing
With outsourcing, you gain access to skilled professionals at a fixed, transparent cost without the hidden overhead. Here’s what you get:
Fixed Monthly Rate
- Covers salaries, benefits, management, and equipment
- No recruitment or training costs on your end
No Office Expenses
- Fully remote teams
- Infrastructure and tech provided
Scale Up or Down Easily
- Add staff during peak seasons (e.g., tax time, audits)
- Pause or adjust with business needs
Specialised Talent, Ready to Go
- Staff trained in Australian financial industry tools and workflows
- Experience in CRM platforms, compliance, reporting, and client support
Result: Financial Firms typically save 50–70% per role annually by outsourcing, with faster onboarding and greater flexibility.
In-House vs Outsourced: A Quick Comparison
|
Cost/Factor |
In-House Staff |
Outsourced Team |
|
Salary |
High (plus benefits) |
Lower, all-inclusive fixed rate |
|
Hiring & Onboarding |
Time-consuming, expensive |
Handled by provider |
|
Training & Supervision |
Ongoing, time-intensive |
Managed by outsourcing partner |
|
Flexibility |
Rigid headcount |
Scale up/down on demand |
|
Infrastructure Costs |
Office, IT, software licenses |
Included in outsourcing service |
|
Compliance Risk |
Your responsibility |
Shared or fully managed |
Why Financial Firms Are Outsourcing Now?
- Post-pandemic work models make remote teams the new norm.
- Rising salaries in financial hubs are squeezing margins.
- Global talent pools offer the same (or better) quality at lower cost.
- Technology makes collaboration seamless, regardless of geography.
What Roles Can Be Outsourced in the Financial Sector?
- Client administration and onboarding
- CRM and data management
- Financial analysis and reporting
- Paraplanning and documentation
- Accounting and bookkeeping support
- Virtual executive assistants
- Compliance and audit support
- Other customised business support
Summary: Maximise Efficiency & Minimise Cost
As financial service businesses aim to stay competitive and agile, outsourcing presents a clear path to reduce operational costs without cutting corners. Whether you’re looking to reduce overhead or scale quickly without the HR burden, outsourcing is no longer a workaround — it’s a strategic advantage.
Ready to Reduce Your Staffing Costs?
At Veda Outsourcing Solution, we specialise in supporting financial service businesses with high-quality, fully managed offshore staffing solutions. Book a free consultation to explore how much your business could save.
