Hiring offshore staff is now a crucial process for accounting firms during a time of immense shortages in the profession. It ensures operational efficiency; the cherry on top is the quality of these associates' work produced. This trending approach of offshore accounting services is necessary for sustaining growth and allows the firm to remain competitive and a dynamic CPA firm.

Many factors can affect the process of offshore staff. Have you ever considered whether you have a one-location or diversified offshore team?

If you are still wondering about this topic, explore the blog to get a clarity. 

One-Location vs Diversified Offshore Staff

One-location simply means hiring members from a single location or office. This promotes faster communication but lacks variability. 

On the other hand, a diversified team in offshore accounting involves hiring professionals from different geographical locations. It has cost-saving and encourages a broader skill set. 

Diversification: Positive & Negatives

Positive

1. Access to Diverse Talent: A diverse team comes up with a broader talent, skills, and expertise. Distributed teams in different locations enable hiring the best people for accounting offshoring. This also works positively in meeting the varied needs of clients and projects.

2. More Room for Innovation & Creativity: Building a team at various locations amplifies creativity and innovation in accounting firms. With diverse perspectives, professionalism, and experiences, the team sparks collaborative problem-solving and flourishes in inventive solutions. 

3. Low Turnover Risk: Choosing a diversified offshore team benefits from low turnover risk. Hiring team members from various locations can mitigate the risk of localized economic challenges, reducing the possibility of mass staff turnover. 

4. Less 'Bandwagon Effect': A diversified team reduces the tendency for staff to follow peers in job-hopping, creating a more stable and committed workforce. 

5. Improved Client Relationship: A diverse team can better and more effectively connect with a varied client base. This builds a stronger connection and establishes seamless communication, eventually increasing client satisfaction and loyalty.  

Negatives 

1. Communication Barriers: Communication challenges are the most common issue in diversified teams. Since there are no face-to-face interactions, it can be challenging to coordinate sometimes. However, this can be a minor issue as interaction is relatively easy via Zoom, Skype, Team Calls, and other means today.

2. Cultural Differences: Building a diversified offshore team can be arduous due to cultural differences between people from different regions. Varied cultural backgrounds can also result in misunderstandings, especially when someone prefers to speak their native language. To resolve this, we make English the bridge language between two members residing in different locations.

3. Team Management:  Diversified offshore staff can make managing team members from different locations challenging. Coordinating with them, assigning them to work, and creating a cohesive team culture can be difficult. Nevertheless, effective management strategies can help address these inherent challenges successfully.

4. Training Complexity: The training process becomes more complex in a diversified offshore staff team due to educational backgrounds and varied learning styles. The issue can be resolved if flexible and inclusive training approaches are adopted.

5. Team Activities: Remote work locations can hinder team-building, but video conferencing and technology help foster camaraderie among all members. 

What Do We Recommend?

While opting for offshore staffing, choosing between a One-Location Offshore team and a Diversified Offshore team becomes easy with our recommendations based on the positive and negative aspects of both.

1. Long-Term Planning: Implementing a diversified offshore team optimizes long-term planning. It enhances risk management, problem-solving, and compliance strategies. 

2. Staff Count & Diversification: The team's diversification is advised in offshore staff. Just follow the process: when the staff count reaches 5, diversify into two cities; when it reaches 10-15, expansion to three cities is recommended, and similarly, the operation can progress to four or five cities. This phased expansion allows for a controlled and manageable scaling of operations.

3. Keep Turnover Rates Low: Considering turnover rates in offshore staff is crucial. Significant cities like Ahmedabad, Bangalore, Hyderabad, and Kolkata have 25% and 30% turnover rates, respectively. On the other hand, turnover rates in smaller cities are comparatively low. If diversification is applied, the increased risk of turnover rates can be mitigated. 

4. Evolution of Long-Term Strategy: As the firm grows, it is essential to consider the long-term strategy. Understanding how many members might leave the team is a part of it. The long-term strategy must evolve based on the anticipated turnover rates and the expansion plan. Adjustments should be made as the organization grows to ensure a sustainable and resilient offshore team. The strategic choice of a diversified offshore team can last and handle challenges in the firm’s way. 

5. Base Location for Larger Teams: When the staff count exceeds 20, it is advised to establish one office as your base location. This centralized hub can be a focal point for the team, and planning occasional gatherings/retreats of offshore teams, where everyone comes together once or twice a year, fosters a cohesive working environment.

Summary

Choosing a diversified team over one-location staff in an accounting firm is optimal. Diversified teams offer various advantages, such as more innovation and creativity, varied talent access, market growth, and a strong team of members with diverse ideas and expertise. They also help improve the workings of offshore accounting solutions.

Frequently Asked QuestionsΒ 

Q1: How does a diversified offshore accounting team carry out smooth communication?
Ans: Using various communication tools for virtual meetings ensures collaboration and seamless communication between team members working at different locations.

Q2: How can a firm overcome cultural differences with a diversified accounting team? 
Ans: Various interactions between team members via cultural awareness training and team-building activities bridge the gap between members from different locations.

Q3: When choosing between one-location and diversified offshore staff, what should you consider?
Ans: Consider various factors, such as cost-effectiveness, accounting firm goals, availability of talent, innovations, creativity, and client service requirements. 

Entigrity™ is a trusted offshore staffing partner for 725+ accountants, CPAs, and tax firms across the US and Canada. With a flexible and transparent hiring model, the company empowers firms of all sizes to acquire skilled accounting, bookkeeping, and tax preparation staff. As a firm 'run by accountants, for the accountants,' Entigrity ensures precise alignment with the hiring needs of accounting firms, providing staff under your control and management, minimizing concerns about compliance, payroll taxes, overheads, or benefits. Entigrity is a proud independent member of the BDO Alliance USA. We have collaborated with IMA to train and upskill 5,000 Professionals in India. We were also recognized as one of the "Dream Companies to Work For" and won the "Great Place to Work® Certified™" in the accounting offshoring industry. 

Mukund Bhalala
Offshore Success Advisor

Mukund, Offshore Success Advisor at Entigrity, is a seasoned expert with over six years of experience in revolutionizing accounting firms across North America through innovative offshore staffing solutions. With a passion for customer relationship management and a keen eye for management accounting, Mukund spearheads large-scale projects, nurturing partnerships with leading firms. His extensive journey traversing 36 states and 210 cities in the USA enriched his understanding of diverse customer needs, fueling his commitment to delivering tailored offshore solutions. Mukund's mission is to empower teams, integrate cutting-edge technology, and drive growth in the accounting industry through strategic offshore staffing innovations.

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