Outsourcing and offshoring are increasingly popular options for accountancy and bookkeeping firms looking to tap into a global pool of talent, increase efficiency and reduce costs.
In this blog post, we will explore the benefits of outsourcing and offshoring for accountancy and bookkeeping firms.
1. Tap into a global pool of talent
Firstly, outsourcing and offshoring can help firms tap into a global pool of talent. By working with a team of professionals in another country, firms can access skills and expertise that are currently in short supply locally. This can be especially beneficial for start-up and growing firms needing additional bandwidth and support to grow or scale their business.
2. Increase efficiency
Second, outsourcing and offshoring can also help firms increase efficiency by allowing them to focus on their core competencies. For example, if a firm outsources its routine bookkeeping and accounts preparation tasks to a team of experts, it can free up time and resources for the firm’s in-house staff to focus on more complex or high-value tasks, such as providing advisory services or business development.
3. Reduce costs
Third, outsourcing and offshoring can help firms reduce costs by allowing them to take advantage of lower labour costs in other countries. For example, if a firm outsources its bookkeeping and accounts preparation tasks to a team in Pakistan, it can potentially save between 40% – 60% on costs compared to hiring in-house staff in the UK.
4. Increase flexibility and scalability
Fourth, outsourcing and offshoring can help firms increase flexibility and scalability. By outsourcing certain tasks or functions, firms can quickly and easily scale and grow their business, rather than having to hire and train new staff in-house.
In summary, outsourcing and offshoring can provide a range of benefits for accountancy and bookkeeping firms, including access to a global pool of talent, increased efficiency, reduced costs, and increased flexibility and scalability. While there are certainly considerations to be made when outsourcing or offshoring, for many firms, the potential benefits can far outweigh any potential drawbacks.