Scaling with offshoring
Q What changes can CPAs expect as offshoring is gaining traction?
A Onshore talent remains the cornerstone of any successful firm, even with offshoring’s rise.However, forward-thinking firms are adopting a blended model, integrating onshore, offshore, and on-demand teams. My people strategy prioritizes keeping senior, managerial, and partner roles onshore. These individuals need proximity for key decisions and client relationships, which can be hindered by offshore logistics. However, not all onshore staff crave those high-pressure roles. The workload can be overwhelming. The key is fostering a clear path for high-potential graduates to reach senior positions swiftly, without being bogged down by routine tasks. This is where offshore and on-demand teams become valuable. Offshore teams can handle routine tasks, freeing up your onshore team for strategic analysis and client service. It essentially empowers top performers to excel.
Q Can offshoring be fair and advantageous to both onshore and offshore teams?
A Firms reduce expenditure by outsourcing services, spending only as little as one-third of the price compared to hiring locally. However, a purely costdriven approach is a false economy. Underpaying anyone, regardless of location, can lead to decreased motivation and performance. Building a successful offshore team requires a commitment to quality talent. This means a rigorous selection process to identify skilled individuals, offering them competitive compensation, and an ongoing investment in their development. Equipping them with the latest technical knowledge and best practices in international accounting is key. This fosters a competent and empowered team, minimizing rework and maximizing their contribution to the firm’s value.
Q How can firms utilize offshore teams to augment onshore operations?
A Offshoring should be viewed as a tool for augmenting, not replacing, onshore expertise. Developing senior staff takes as many as 10 to 14 years — a time frame challenged by the everincreasing need for advanced accounting skills. Offshoring routine tasks can free up bandwidth. Instead of offshoring senior roles, consider a workload redistribution strategy. Repetitive tasks can be transitioned from senior to intermediate, intermediate to graduate, and ultimately to the offshore team. This ensures each role is aligned with its core responsibilities and fosters career progression for onshore staff. With more than 88 tasks suitable for offshoring, firms can free up significant onshore capacity. This allows them to focus on higher-level analysis, client service, and strategic initiatives, ultimately leading to a more efficient and growthoriented practice.
Q What strategies could firms implement to retain offshore and onshore teams?
A Retaining both onshore and offshore teams hinges on fostering a sense of career progression. My experience with more than 1,100 firms indicates that a lack of defined career paths is a major driver of employee turnover. To approach this, firms need to implement clear one-, three-, and fiveyear goals for all team members, aligning them with the firm’s overall growth strategy. This demonstrates commitment to professional development and creates a sense of purpose for both onshore and offshore employees. By providing a clear road map for career advancement, firms can invest in their employees’ futures, ultimately leading to improved retention rates for both onshore and offshore teams.
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