OFFSHORE STAFFING VS OUTSOURCING

10 Oct 2018  |  735
OFFSHORE STAFFING VS OUTSOURCING

Why outsource when you can hire your own resource. This is something that we always say to accountants from small and mid-size accounting firms of US. In this webinar Mike Goossen, CPA presents us why remote staffing is much superior and stable solution for CPAs and accounting practices.

We are working with more than 500 Accounting Firms, CPA, EAs & Tax Professionals from all over the US. A lot of our clients before associating with us have had a stint with outsourcing. Thanks to the staffing challenges of the accounting industry and the ever piling up work, sometimes outsourcing seems to be the only way out for the time being. However, just like an architect can’t outsource his designing, an accountant too must refrain from outsourcing his core operations. While we spoke with a lot of people during conferences, networking events, seminars and other mediums we noticed that they had a common misconception about remote working. They thought remote staffing is just outsourcing. This webinar is an attempt to elaborate and educate how offshore staffing and outsourcing are poles apart and why offshore staffing is a better solution for accounting firms.

Freedom to select the person that fits your need

While hiring a Offshore Staff, the hiring process remains somewhat same as hiring a local staff such as screening resumes, interviewing and testing candidates and finally selecting the best fit. So you have the freedom of choosing the staff that best fits your need.

Actual Staff v/s Ghost Staff

Outsourcing never gives you opportunity of selecting the staff. You chose a vendor who appoints an Account Manager who is responsible for customer relationship and communication and actual work is done by somebody who you many never know and may even change from time to time outside of your knowledge.

Direct Reporting and 100% Control V/s No Direct Reporting or Control

A remote staff directly reports to you and works under your firm's control and management. On the Contrary in outsourcing there is no direct reporting, you work with an account manager and actual work is done by whether a staff or machine, you never know.

Consistency and Accuracy very High V/S Poor Quality of Consistency

In Offshore Staffing consistency & accuracy in the quality of work is very high because same staff works on your projects according to your business polices, SOP’s and processes. Whereas in outsourcing it may so happen every project staff that may work is different and which may result in substandard quality of work.

Benefits of Learning Curve = Better Staff Efficiency and Productivity

As the remote employee gains experience in your firm he undergoes a learning curve that helps remote staff in becoming more efficient and productive with time. Whereas in outsourcing the staff that works is ghost so you never know it gets changed and there are no benefits of learning curve. Outsourcing is suitable when work is of following nature

  • One Time
  • Non-Core
  • Repetitive – Data Entry Type.

Accounting firms can outsource preparation of their website or their social media management but they can’t afford to Outsource Accounting or Tax Preparation of their clients, because that’s their core business of which they have their own approach, protocols and quality controls in place while doing that. You can never Outsource core business operations otherwise it would result in Poor quality of Work Product and Client Deliverables. Mike Goossen, CPA in this webinar explains how one should not confuse between outsourcing and offshore staffing. While both are different and hold their own importance and utility somewhere or the other, but in the case of handling core operations of accounting firms, outsourcing is not the right approach and has more limitations than just one benefit- cost saving. But a lot of times things that seems saving you money may cost you some other way. That is the reason why instead of outsourcing their core tasks to third parties, Big 4 and Large Accounting firms have set up offices offshore. The biggest motivating factor is to attract wider talent pool, reduce labor cost and getting rid of draconian Labor compliances. Your views and comments are always welcome and we would be eager to know what more would you like to know from us. Please subscribe to our newsletter to get regular updates from Entigrity Offshore Staffing.

About The Author
Senior Vice President

Mike is a CPA and has over 30 years of experience in thought leadership and mentoring. His experience and constant efforts in solving prevalent issues of accounting industry is his biggest stand out point. He has been instrumental in mentoring scores of entrepreneurial accounting and finance professionals to get up on their feet and convert their practices into successful ones. He has authored a book called 'Principles of High Performance Leadership'

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