A limited talent pool:
Traditional methods often tap into local talent pools, which may prove inadequate for sourcing specialized accounting roles or addressing talent gaps.
Benefits of outsourcing
Business process outsourcing companies (BPOs) generally operate from within developing economies. This provides several benefits to businesses looking to outsource their repetitive, time-consuming and transactional business processes. These include:
Higher recruitment costs:
Internal recruitment, while potentially reducing external agency fees, still incurs substantial expenses in terms of sourcing time, advertising and onboarding resources. External agencies often charge steep fees, further driving up costs.
Constraints to scalability needs:
Both internal HR departments and external agencies may struggle to swiftly adjust workforce capacity to match fluctuating demand levels. This lack of agility leads to inefficiencies and missed opportunities.
Talent quality inconsistencies:
Internal recruiters may better understand the firm’s culture and requirements, but they may lack the extensive networks and resources of external, local agencies. Conversely, these agencies might offer access to a broader local talent pool but may need help to maintain consistency in candidate quality and fit.
The risk of burnout:
Internal recruiters may better understand the firm’s culture and requirements, but they may lack the extensive networks and resources of external, local agencies. Conversely, these agencies might offer access to a broader local talent pool but may need help to maintain consistency in candidate quality and fit.
The case for offshoring
In the realm of accounting, offshoring emerges as a strategic talent acquisition beacon.
Offshoring is a type of outsourcing. When a company outsources, it hires certain job roles or teams from outside the organization through a third-party provider. Offshoring simply means doing the same thing, but instead of hiring locally, the company hires from a different country.
The main benefits accounting firms report after engaging with offshoring providers versus traditional recruitment strategies or even outsourcing locally are:
Access to a wider talent pool:
Offshore providers offer access to a vast and diverse talent pool, often located in countries like the Philippines, known for their highly educated, CPA-qualified and skilled accounting workforce. These professionals are not only proficient in international accounting standards but also possess specialized expertise in various accounting functions, ensuring that accounting firms can find the right talent to meet their specific needs, even in niche areas.
Lower recruitment costs:
Offshoring significantly reduces recruitment costs by offering competitive employment packages compared to high-cost regions; with employment savings of up to 70%. This is largely due to their handling of the entire recruitment process, from sourcing and screening candidates to onboarding, relieving accounting firms of the time and resources associated with traditional recruitment methods. Moreover, offshore providers typically operate in countries with lower living costs, allowing them to offer competitive salaries while still achieving substantial cost savings for accounting firms.
The ability to scale support up and down quickly:
Offshore providers excel in scalability, offering flexible staffing solutions that can quickly adapt to changing demand levels. They maintain a pool of skilled professionals ready to be deployed on short notice, ensuring that accounting firms can scale their workforce up or down as needed without the delays or inefficiencies commonly associated with traditional recruitment processes. This agility enables firms to seize opportunities during job openings or peak periods without being hindered by staffing constraints.
Quality accounting talent:
Offshore providers uphold rigorous standards in talent acquisition, employing robust screening processes to ensure the quality and suitability of candidates. They often have access to extensive talent networks and utilize advanced assessment tools to identify candidates who not only possess the requisite skills and qualifications but also align with the culture and values of the accounting firm. Additionally, offshore providers invest in ongoing training and development programs to continuously enhance the skills and competencies of their workforce, further ensuring consistent talent quality.
Burnout isn’t a factor:
Offshore providers alleviate the risk of burnout by lightening the workload of internal HR teams and local staff. By outsourcing routine and time-consuming tasks to offshore teams, accounting f irms can free up valuable time and resources, allowing their employees to focus on highervalue activities that contribute to strategic objectives and client satisfaction. Offshore teams can also support outside regular business hours, thereby reducing the burden on local staff and promoting a healthier work-life balance. Additionally, offshore providers prioritize employee wellbeing and engagement, fostering a positive and supportive work environment that minimizes the risk of burnout and turnover.
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Learn moreThe long-term strategic value of offshoring
It’s important to highlight that offshoring is more than just a way to combat accounting surges or peak periods of demand as a short-term solution. Here’s how it provides enduring advantages:
Continuous support throughout the year:
Accounting firms face unique challenges with longer tax periods, requiring consistent support beyond just peak seasons. Offshoring ensures uninterrupted assistance, providing continuous support throughout the year to meet the demands of extended tax periods and other ongoing accounting needs.
Timely and accurate service delivery:
Offshoring allows firms to ramp up support during peak seasons, ensuring timely and accurate delivery of services to clients. With offshore teams bolstering capacity during high-demand periods, accounting firms can maintain service excellence and meet client expectations without compromising on quality.
Enhanced efficiency during off-season:
Offshoring isn’t just about peak periods; it’s about leveraging offshore teams year-round to enhance overall efficiency and productivity within the firm. During the off-season, offshore teams contribute to administrative tasks, organization, and process optimization, freeing up onshore staff to focus on higher-value activities.