{"id":1000897649,"date":"2024-11-08T15:26:21","date_gmt":"2024-11-08T20:26:21","guid":{"rendered":"https:\/\/www.goingconcern.com\/?p=1000897649"},"modified":"2024-11-08T15:26:52","modified_gmt":"2024-11-08T20:26:52","slug":"one-quarter-of-firms-say-theyre-offshoring-another-12-percent-plan-to-start","status":"publish","type":"post","link":"https:\/\/www.goingconcern.com\/one-quarter-of-firms-say-theyre-offshoring-another-12-percent-plan-to-start\/","title":{"rendered":"One Quarter of Firms Say They’re Offshoring, Another 12 Percent Plan to Start"},"content":{"rendered":"\n

This Journal of Accountancy<\/em> article<\/a> was mentioned in last Friday’s Footnotes<\/a> (*ahem* Footnotes a wrap-up of the week’s accounting news from other sources without the sassy GC commentary and is published every Friday at 5 pm Eastern) but honestly it deserves its own article in case anyone missed it.<\/p>\n\n\n\n

In “Offshoring for CPA firms: The hows and whys,” JofA throws out some figures on outsourcing — both foreign and domestic — based on responses from its MAP survey and sticks to the official line about how the CPA talent shortage is forcing these poor firms to look elsewhere for talent. We’ll ignore how much cheaper offshore talent is compared to their onshore counterparts. We’ll also ignore that firms are laying tons of people off in the US while greatly increasing their headcounts in other countries and not even trying to hide it (see: Firms Really Aren\u2019t Helping This Pipeline Problem, You Guys<\/a>). Anyway, the AICPA numbers:<\/p>\n\n\n\n

\n

Of the more than 1,100 firms that participated in the AICPA\u2019s 2023 National Management of an Accounting Practice (MAP) survey, about 30% said they outsourced domestically and 25% said they outsourced to offshore workers. Another 14% said they planned to start outsourcing domestically, and 12% said they planned to start offshoring.<\/p>\n\n\n\n

The CPA talent shortage and an increase in demand for accounting services in the United States are prompting many firms to go beyond their traditional hiring practices and explore the global talent pool and staffing across time zones.<\/p>\n<\/blockquote>\n\n\n\n

As evidenced by the article’s title, it’s mostly advice for firms on outsourcing best practices. Blah blah. But at the very bottom there’s a sort of case study about a firm in Atlanta that consisted of five employees when they started offshoring “part of its expanding load” in 2018. At first they used a third-party vendor in India which meant this vendor handled the hiring and training of offshore staff, starting with one person and eventually expanding to three.<\/p>\n\n\n\n

\n

The firm\u2019s team members, who were used to working virtually, understood the importance of setting up workflows, processes, and controls before pushing tax return billable hours offshore. The approach proved successful, and within months the firm had offshored enough work to India to keep three people there busy.<\/p>\n<\/blockquote>\n\n\n\n

Would really love to hear from the firm’s team members here.<\/p>\n\n\n\n

But then…<\/p>\n\n\n\n

\n

One year into the contract, the vendor experienced turnover. The firm initially switched to offshoring project by project and then decided to become the employer of record for its India staff. The firm hired one employee in India they had worked with the year before who was groomed to become team leader, recruited eight others, and took over onboarding, training, and managing the offshore employees.<\/p>\n<\/blockquote>\n\n\n\n

Man, that leader was really putting in work eh? So fast-forward to current day and they’ve got eight staff of their own in India. And they’re offshoring 12,000 hours to India per year. The offshore staff are doing the preliminary work of gathering documents and drafting emails to clients requesting any missing data that is then pushed back to the onshore manager who communicates with the client and ultimately completes the tax return.<\/p>\n\n\n\n

According to 20 seconds of Googling, the median salary for a tax accountant in India is \u20b9 600,000 ($7,109 USD). Meanwhile, the average for a tax associate in Atlanta is $61,866 a year. Would ya look at that, 61,866 divided by 7,109 is approximately 8.7. Tell us again how this is because of the CPA shortage when the shortage itself was caused in large part by consistently pathetic pay<\/a>.<\/p>\n\n\n\n

Related: Cheap-Ass Firms Are Loving This Outsourcing Thing<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This Journal of Accountancy article was mentioned in last Friday’s Footnotes (*ahem* Footnotes a wrap-up […]<\/p>\n","protected":false},"author":11,"featured_media":1000897650,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[33167,5796],"tags":[1284,5552,729,1176],"class_list":["post-1000897649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-trends","category-serious-questions","tag-india","tag-offshoring","tag-outsourcing-0","tag-were-doomed"],"yoast_head":"\nOne Quarter of Firms Say They're Offshoring, Another 12 Percent Plan to Start - Going Concern<\/title>\n<meta name=\"description\" content=\"And we do some math on how you can hire 8.7 Indians for the price of a single tax associate in Atlanta.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.goingconcern.com\/one-quarter-of-firms-say-theyre-offshoring-another-12-percent-plan-to-start\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"One Quarter of Firms Say They're Offshoring, Another 12 Percent Plan to Start\" \/>\n<meta property=\"og:description\" content=\"And we do some math on how you can hire 8.7 Indians for the price of a single tax associate in Atlanta.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.goingconcern.com\/one-quarter-of-firms-say-theyre-offshoring-another-12-percent-plan-to-start\/\" \/>\n<meta property=\"og:site_name\" content=\"Going Concern\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goingconcernblog\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-08T20:26:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-08T20:26:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.goingconcern.com\/wp-content\/uploads\/2024\/11\/Accounting-offshoring-trends.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Adrienne Gonzalez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@inkywretch\" \/>\n<meta name=\"twitter:site\" content=\"@going_concern\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Adrienne Gonzalez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.goingconcern.com\/one-quarter-of-firms-say-theyre-offshoring-another-12-percent-plan-to-start\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.goingconcern.com\/one-quarter-of-firms-say-theyre-offshoring-another-12-percent-plan-to-start\/\"},\"author\":{\"name\":\"Adrienne Gonzalez\",\"@id\":\"https:\/\/www.goingconcern.com\/#\/schema\/person\/e833b23769d930b332c6af69ed30e92e\"},\"headline\":\"One Quarter of Firms Say They’re Offshoring, Another 12 Percent Plan to Start\",\"datePublished\":\"2024-11-08T20:26:21+00:00\",\"dateModified\":\"2024-11-08T20:26:52+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.goingconcern.com\/one-quarter-of-firms-say-theyre-offshoring-another-12-percent-plan-to-start\/\"},\"wordCount\":609,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\/\/www.goingconcern.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.goingconcern.com\/one-quarter-of-firms-say-theyre-offshoring-another-12-percent-plan-to-start\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/www.goingconcern.com\/wp-content\/uploads\/2024\/11\/Accounting-offshoring-trends.jpg?fit=1280%2C720&ssl=1\",\"keywords\":[\"India\",\"offshoring\",\"Outsourcing\",\"We're doomed!\"],\"articleSection\":[\"Industry Trends\",\"The Serious Questions\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.goingconcern.com\/one-quarter-of-firms-say-theyre-offshoring-another-12-percent-plan-to-start\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.goingconcern.com\/one-quarter-of-firms-say-theyre-offshoring-another-12-percent-plan-to-start\/\",\"url\":\"https:\/\/www.goingconcern.com\/one-quarter-of-firms-say-theyre-offshoring-another-12-percent-plan-to-start\/\",\"name\":\"One Quarter of Firms Say They're Offshoring, Another 12 Percent Plan to Start - 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