As more and more accounting firms are considering outsourcing as one component of their delivery model, a number of key issues have arisen which can influence success or failure.
While it has become much easier these days, offshoring is not a magic pill for firms that want to enhance efficiency and improve capacity. Planning is crucial.
Diverse Range of Benefits
The most obvious benefit of offshoring is pure cost saving. Business budgets in Australia, New Zealand, the US and Canada stretch further when employing offshore in the Philippines, easing pressure on those onshore in a number of key areas.
Outsourcing accounting can help firms:
- Operate more efficiently
- Access a more diverse skill set
- Add more value to onshore work
- Retain both onshore and offshore employees
- Ultimately, grow and strengthen your business
Outsourced Accounting offers Lower Costs and Competitive Pressures
Firms choosing the offshore route have indicated that their main motivation for adapting this business model is lower costs. Contending pressures brought about by factors like, increased competition and smaller client and customer bases also drive companies to employ offshoring’s cost-cutting practices.
Now firms can either pass on these savings to their clients so they can offer more for less or keep their current prices and enjoy larger margins.
Access to a Diverse Pool of Skilled Employees
Skill shortage is a pressing factor affecting the current global accounting landscape. In many regions, companies have sufficient access to a candidate pool, but not to those who possess the training or experience in the skill sets required for specific roles.
One common scenario is this: you receive 30 resumes for an accountant role and discover that 29 are unsuitable. The one that you find to be suitable then costs far more than you budgeted.
This uncomfortable hurdle can be overcome by tapping into the large pool of offshore talent, specifically in the Philippines. Outsourced accounting provides firms access to a more diverse pool of skilled employees so they can enjoy:
- Specialist knowledge
- Resources that may not be available locally
- Niche skills
- Better quality compliance work
- More time for onshore employees so they can focus on key client-facing tasks
Building strong offshore teams allows companies to enjoy levels of workforce flexibility that are difficult to achieve with just an in-house team.
