At present, there are a number of organizations across the world that are hit by COVID-19. As a result of which these companies are under severe pressure to lower the cost. This is likely to favor outsourcing work to the accounting outsourcing companies in India over insourcing. In fact, a large number of global companies are partnering with technologically competent Chartered Accountants to manage their accounting outsourcing initiatives.
The large and long-established accounting and management reporting services providers have built up expertise in the latest and advanced technologies that clients were looking to leverage.
With the coming up of new data analysis technologies over the last 10 or 20 years, there has been a growing interest among large enterprises to build capacity and also to leverage the capabilities. We have the ability to innovate on these technologies and automate it on a greater basis to be highly efficient.”
Due to the COVID -19 outbreak, there has been an economic uncertainty and thus subsequent moves to cut costs. This has surely encouraged companies to outsource more and more operations to Chartered Accountants in India. As per the view of the analysts, this can be partly attributed to the fact that now almost all the work could be done remotely. Besides, the companies have seen the virtual way of working, therefore, their confidence and perception of offshoring and globalization has changed. At the same time, their apprehensions such as many activities they thought cannot be done outside their office, they believe can be easily done now. Also, all companies are facing immense cost pressures which highlights the significance of going for outsourcing.
We believe the next two-three years will likely see an increase in outsourcing as clients need to optimize cost models while transforming their businesses.
In the present situation, outsourcing to cut costs cannot be described rightfully since all of them have some elements of digital transformation even in back-end jobs like accounting and management reporting. Also, the concept of outsourcing is also related with what changes we can bring to customers in terms of technology and bringing in best practices from around the globe. So, we can say that the decision to insource work to a captive unit or outsource it to an accounting firms in India is largely based on the sector that the company operates in.