Internal vs external IR teams

Public companies manage investor relations in different ways - some build internal IR teams, while others outsource the function to external advisors.

The right approach depends on factors like company size, investor complexity, and available resources. No matter the model, IR teams need the right tools, data, and processes to engage investors effectively.

Internal IR teams

An in-house IR team is fully embedded within the company, responsible for all investor communications, market interactions, and regulatory reporting.

Their advantages include:

• Deep company knowledge - internal teams have a direct line to leadership, strategy, and financial performance.
• Agility in communication - internal teams can quickly adapt to market sentiment and investor needs.
• Stronger investor relationships - IR teams build long-term relationships with institutional and retail investors.

But they also have disadvantages:

• Resource-intensive - Running an IR function in-house requires skilled professionals, investor databases, and modern engagement tools.
• Limited scalability - Small teams may struggle to engage investors beyond key institutional relationships.

External IR teams

Some companies outsource IR to external agencies, investor relations firms, or PR teams to handle communication and investor engagement.

Their advantages include:

• Access to specialised expertise - IR firms bring industry experience, market connections, and investor networks.
• Scalability - external teams can handle large-scale investor outreach without burdening internal resources.
• Cost efficiency - for companies without the budget for an in-house team, external IR can provide professional investor engagement.

The challenges for both

Regardless of the model, IR teams face similar challenges:

• Data fragmentation - whether internal or external, IR teams struggle with scattered shareholder data, making it difficult to track investor behavior.
• Scaling engagement - both models tend to prioritize institutional relationships, leaving retail investors uninformed and unengaged.
• Limited visibility into shareholder sentiment - without real-time tracking, IR teams rely on delayed feedback and traditional investor meetings to gauge market perception.

Whether managed internally, externally, or through a hybrid approach, the core challenge remains the same - engaging investors effectively at scale while maintaining control over the company’s market narrative.

The key to success isn’t just the structure of the IR team - it’s the tools they use.

With the right technology, IR teams can automate investor engagement, track sentiment in real time, and ensure every shareholder receives relevant, timely updates - regardless of whether the function is handled in-house or outsourced.