Outsourcing Services Overseas

How many business owners out there have ever considered where their accounting and tax work is actually being done? Would it surprise many to learn that it is increasingly common for accountancy firms to outsource basic accounting, tax and payroll functions to emerging economies such as the Indian subcontinent?

Outsourcing Remains a Guilty Secret

Very rarely will an accountancy firm make you aware that outsourcing is happening. They take the view – rightly, in my opinion – that many clients would be very unhappy with this situation. Many of the issues surrounding outsourcing of work centre around the loss of control of data and the quality of the work being done – but I think the biggest issue remains the security of the data – particularly at a time when identity theft and money laundering are increasingly common problems.

Hidden Costs of outsourcing

Accountancy firms may argue that, only by outsourcing can they drive down their costs and that helps support their fee levels – but I believe that maintaining local employment and skills levels brings their own benefits and results in a more responsive service to clients. And, of course, never underestimate the benefit of local knowledge!

Our Approach to Outsourcing

At D & A Pearston, we have built our business (and our reputation) on being a local practice in touch with our client base. We believe in providing a one stop practice for businesses. Part of that service offering is ensuring that we maintain the confidentiality of client information and we can only do that by minimising the risk of leakage of personal and other data.
So will we be outsourcing our core functions any time soon? I think you can take that as a resounding – NO!

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