Offshoring is transforming the accounting industry, as highlighted in Edmund Tadros’ recent Australian Financial Review article, “Accountants Ramp Up Offshoring to Bring Down Costs.” Here’s your quick 5-minute read of the key points.
Offshoring Gains Momentum in Accounting
Up to one-third of staff at some of Australia’s top accounting firms are now based offshore, according to the 2024 AFR Top 100 Accounting Firms list. Firms are turning to countries like India and the Philippines to:
- Cut costs, with offshore workers costing roughly one-third of local salaries.
- Improve efficiency by leveraging 24-hour work cycles.
- Address the shortage of skilled professionals for roles like accountants and tax specialists.
This shift, pioneered by major firms like Deloitte and EY, is now being embraced by mid-sized and smaller firms across the industry.
Key Reasons Firms Are Offshoring
- Cost Savings:
- Firms like Fortuna Advisory use offshore teams to significantly lower overheads.
- Savings are reinvested into local staff pay increments, boosting morale and retention.
- Efficiency Gains:
- Time zone differences enable faster client delivery, with offshore teams completing tasks overnight.
- Vistra’s offshore team ensures a seamless 24-hour service, freeing onshore staff to focus on high-value, client-facing activities.
- Scalability and Expertise:
- Offshore professionals now manage complex tasks like financial reporting and tax compliance.
- Prosperity Advisers employs 55 staff in the Philippines, making up 25% of their total workforce.
Challenges and Criticisms
While offshoring offers clear benefits, some firms remain sceptical due to:
- Data security and service quality concerns.
- Client relationships: Critics argue local trust can’t be outsourced.
- Hidden management costs: Some firms report needing additional resources to oversee offshore teams.
Firms like WMS Tax & Advisory and 360Private continue to rely exclusively on local staff, valuing direct control and relationship-building over cost savings.
Key point to note here is, at Acquire BPO our safe, flexible, and innovative outsourcing solutions, underpinned by our core value of transparency, directly address these concerns. We prioritise robust data security, high-quality service delivery, and open communication, ensuring seamless integration with your onshore operations while maintaining client trust and delivering exceptional outcomes.
Looking Ahead
Offshoring is set to grow as accounting firms face:
- Increasing client demands for faster, cost-effective services.
- Persistent labour shortages in Australia.
- The need to remain competitive in a globalised market.
Firms that integrate offshore teams effectively into their operations are likely to lead the industry in innovation and scalability.
How Acquire BPO Can Help Your Firm
Ready to explore offshoring for your accounting operations? Acquire BPO offers:
- Access to skilled professionals in the Philippines, tailored for your business needs.
- A secure, scalable workforce that complements your onshore team.
- Proven solutions to help you reduce costs and improve efficiency without compromising quality.
Discover more at acquirebpo.com.
