India Vs Philippines Which is the Best Offshoring Destination for Accounting Firm
Though the practice of offshore staffing in accounting has been around for decades, its recent acclaim can be owed to the pandemic. When the world shifted online, offshoring staffing or outsourcing tasks, especially in the accounting industry, gained impetus. The growing popularity has resulted in newfound interest by multiple small and large firms to explore offshore staffing and internalize them in their firms' processes. The fundamental questions that may arise in the minds of newcomers would firstly be the quality of talent and their ability to work in cohesion to the norms and conducts of the source nation. Another imperative question that pops up is how one can choose the right destination for offshore staffing and outsourced accounting.
In the accounting realm, it normally comes down to these two as the top choices, India vs Philippines for offshoring accounting staff or outsourcing accounting, bookkeeping, tax, and auditing-related tasks.
The offshoring and outsourcing industry in these nations has been adeptly trained to cater to the financial services of all types of source nations. In fact, accounting offshoring has become a battle of India vs. Philippines.
But how do you make a choice?
India vs. Philippines Which country is best for outsourcing or offshoring accounting staff? Here’s a comparison to help you decide!
India is home to the renowned ‘big fours’, which have multiple offices in most major cities of India. These offices are dedicated service centers that are designed to cater to the requirements of US, UK and Canada-based clients. Additionally, offices specifically catering to the Indian market are also present, which showcases the potentiality of the Indian workforce and the financial markets.
Big 4 & Consulting Firm’s Hiring
- Big 4 Hiring Fresh Graduates
- Deloitte to Double their Workforce in India in 2 to 3 years
- Deloitte Plan to hire 40000 staff in Hyderabad in India
- Deloitte Hiring Chartered Accountants
- EY Hiring 14000 staff in India
- EY Leases 115,000 Sq Ft space in India for Expansion
- Cognizant IT Major Hiring ( 21-22 (33K) and 22-23 (50K))
- Thomson Reuters
- Intuit has 6000+ People in India
"Most tech giants functioning in the USA have their largest offices in India. Their confidence in the Indian workforce and economy is contagious and is spreading to other industries as well. This also has a massive effect on offshoring practices as it instils conviction in the talent". Stated by Shawn Parikh, CEO, Entigrity.
The topmost finance and accounting firms with offices all over the world are expanding their presence in India by recruiting more. Entigrity works with 30 of the world’s top 100 accounting firms by helping to build up their offshore teams.
2. Talent Availability and Development
When anyone thinks about offshoring or outsourcing, their main concern is creating a linkage between organizational practices and manpower. A united approach is important not only in serving clientele but also in maintaining calm and structure within the firm. While comparing India vs Philippines: the top outsourcing destination, It is pertinent to note that Indian universities produce close to four million graduates each year who are proficiently trained in the commerce industry. As a result, foreign firms can choose from a large talent pool when hiring staff for their outsourcing or offshoring operations. Since it is predicted that the number of individuals in the working-age population will only keep rising, it is unlikely that this talent pool will get smaller in the upcoming years. US companies want CPAs, CMAs and EAs who have an ingrained understanding of the US financial operations and procedures.
There has been a steep rise in the number of Indian students opting for CPA and other similar accreditations in recent years, which has attracted innumerable coaching and training institutes to lay ground for outsourcing in India. At Entigrity, the hired staff is ably trained to not only understand the procedural aspects of the industry but also the nitty-gritties like courteous communication skills which make the clients feel more comfortable. India also boasts of being the second-largest English-speaking country in the world right after the USA. Therefore, the workforce is well-versed with the language and can adapt to different accents of the same. Even though the English language has found its way into the Filipino culture, there is a stark variance in the extent of the English-speaking population when compared to India. So, while considering India vs Philippines, which is preferable for searching for the best accounting talent, India will definitely be your go-to destination.
3. Time zone
When it comes to offshore staffing, a coordinated effort is one of the many requirements for smooth-sailing operations. For this, a relatively well-adjusted and closer time zone is of pertinence. Shifts in India usually end between 12-1AM (India Standard Time). On the other hand, in the Philippines, shifts usually end between 3:30-4 AM (Philippine Standard Time) which falls in the parameter of the infamous graveyard shift. The effectiveness and coordination with US and Canadian clients are put under strain as a result of this. Offshore teams from the Philippines work great with Australian clients as they share the same time zone.
4. Cost Advantage
India has an average monthly wage of INR 32,840 (approx. $422). In India, if employees put in 8 hours of work each day, the minimum monthly wage they can expect is around 5,280 INR, which is roughly $70. On the other hand, in the Philippines, the labor cost for the same amount of work is 16,000 PHP, which converts to about $330. Surprisingly, India's labor cost remains lower than that of the Philippines.
The compelling cost advantage compared to the Philippines makes India an attractive offshoring destination for accounting firms. This advantage directly impacts the financial performance and profitability of accounting firms, empowering them to allocate resources more efficiently and achieve sustainable growth.
5. Quality, Productivity, and Work Commitment
Clients who have worked with both the Philippines and India often emphasize the superior quality, productivity, and work commitment exhibited by Indian offshore partners. India's ecosystem has nurtured a workforce equipped with the necessary skills, knowledge, and training to deliver exceptional results. Offshore Accounting professionals in India possess a strong understanding of international accounting standards and are well-versed in the latest technological advancements. This, coupled with a culture of dedication, flexibility, and a strong work ethic, leads to improved accuracy, efficiency, and client satisfaction.
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There are many excellent English speakers, reasonably priced employees, and highly skilled developers in both India and the Philippines. However, One cannot unsee the clear advantage that India has not only in terms of decades-long experience but also in the quality and quantity of the talent pool available. Moreover, the investments of big players in the finance and accounting industry in terms of training and development also have a tremendous impact on offshore staffing.
Efforts like these undeniably make India the topmost choice, even in comparison to an able opponent like the Philippines. Though outsourcing to the Philippines is picking up, it just can’t compete with all the advantages India has to offer. Companies like Entigrity have mastered how to provide optimum quality services, all the while developing and maintaining a smooth and streamlined organizational ecosystem. That is exactly why Entigrity is the #1 offshore staffing company in the country. We are well-equipped to fulfill the demands of accounting firms, irrespective of their sizes, and can help you get the right staff, at the right time, for the right price.
1. Why do most of the outsourcing/offshoring companies are in India & Philippines?
Most outsourcing/offshoring companies are in India and the Philippines due to their large pool of skilled and cost-effective English-speaking professionals, making them attractive destinations for businesses seeking to reduce expenses and access specialized talent.
2. Is India a leading country in outsourcing/offshoring?
Yes, India is considered one of the leading countries in outsourcing/offshoring. According to the Gartner survey, India remains the most successful country among global offshore sites. It performed well in all ten criteria. According to Gartner, while its cost-competitiveness is being challenged due to the rising rupee, this is offset by its strength in other areas.
This blog was updated in July 2023
Entigrity™ is a trusted offshore staffing partner to 725+ accountants, CPAs, and tax firms across the US, UK, and Canada. Our flexible and transparent hiring model gives helps firms of all sizes to hire staff for accounting, bookkeeping, tax preparation, or any other task for 75% less cost. As a firm 'run by accountants, for the accountants,' Entigrity captures the hiring needs of accounting firms most precisely, providing staff that works directly under your control and management; still, you are left with the least to worry about compliance, payroll taxes, overheads or any other benefits. To Offshore accounting services, bookkeeping, Tax, and audit services, visit us.