A thorough analysis of the conducive factors that make India the number one destination for large- and mid-sized international companies to offshore their accounting needs.
As one of the leading hubs for outsourcing accounting jobs, India currently holds 37% of the global market; employing roughly 4.3 million people. [AS2]
An impressive combination of a talented workforce, exceptional tech support, time zone advantages, and government initiatives make India the preferred offshore accounting partner for countries like the US, UK, Canada, Singapore, and Australia.
Let’s take a deep dive into why is India the best country for offshoring accounting needs.
Not only are Indian accounting standards increasingly getting aligned with the globally applicable IFRS, but there are already existing similarities between the two nations’ practices. From fundamental accounting principles like accrual accounting, double-entry bookkeeping, matching principle, etc.- this pre-existing knowledge of the international accounting industry requirements helps Indians to hit the ground running.
As India continuously grows to become the offshore partner for international accounting firm needs – with the lion’s share coming from the United States – numerous Indian universities and specialization programs offer add-on courses on the US GAAP. This familiarizes professionals to understand the nuances specifically used in the US.
Also read: Why Indian CAs are in demand in countries like the US, UK, Dubai, and Australia
The United States particularly is witnessing a sharp rise in the business and service sectors while a simultaneous decline in the availability of local accountants. Reduced interest in the field coupled with a retirement wave has led to a shortage of professional accountants in the country.
Did you know that the national giants, such as Lyft Inc., Rivian Automotive Inc., Planet Fitness Inc., and Mister Car Wash Inc. had to redo their earning statements because of mistakes made by inexperienced professional accountants? Not only do jarring mistakes like these shake investors’ confidence, but in some cases, the companies also have to face harsh penalties.
The demand is still so high that “More and more firms are turning to undergraduates to bridge gaps, leading to many students taking on full-time internships on top of their full-time studies”, says Jacqueline Burke, a professor of accounting at Hofstra University’s Zarb School of Business.
So why are people not rushing to become accountants despite accounting jobs being the number one category on student job sites like Handshake? Simply, because the cost-benefit analysis of putting in five years of work with mounting student loans and entry-level remuneration doesn’t appeal to the current generation.
With a current strength of more than 10 million accountants and bookkeepers and more professionals getting added to the list every year, India is dominating the accounting landscape. As a young country, companies also future-proof their accounting needs by depending on an experienced yet younger workforce.
Accountants are the backbone of a nation’s economy as they ensure financial stability, informed decision-making, and compliance with regulations for businesses and individuals alike. With an ever-growing pool that is not just spearheading its own nation’s financial growth trajectory, Indian accountants are lending their support to other nations to navigate tax complexities and ensure financial development.
A mix of quality and quantity makes the Indian talent pool the go-to choice for offshoring accounting firm needs.
The comparatively lower labor, operation, admin, and overhead cost helps companies abroad get the best quality at a much more affordable price. Accounting is a time-consuming task that requires not just expert domain knowledge and hands-on professional experience, but also meticulous combing through and analysis of heaps of data.
Plus, the time zone differences give the benefit of having the work continuously done at the back end while you sign off. Additionally, you get round-the-clock support too as Indian companies operate in shifts.
Leveraging the opportunity to offshore accounting needs to Indian companies not only reduces the cost burden but also frees up time and budget so you can focus on scalability and core business decisions.
Cost benefits, unmatched work ethics, professional knowledge across industries, and more importantly a wide pool of eclectic talent is the reason why the country is trusted by the BIG Four. Global giants, such as KPMG, Deloitte, Ernst & Young, and PwC have captive offices in different parts of the country.
Local operations help them cater to the specialized needs of the global market, enabling them to reach a whopping $4 billion in annual revenue[AS3]. Additionally, borrowing exceptional talent from different industries and niches, such as tech, administration, and HR creates a conducive internal operational network that boosts growth and development at a much lower cost. The favorable ecosystem and a constant inflow of graduates and professionals have paved the way for massive expansion of the Big Four in the country with Deloitte alone planning to double their workforce strength in India in the next few years.
Also read: Deloitte hiring Chartered Accountants
From Satya Nadella to Sundar Pichai, Indians are headlining global company operations, making a name for themselves, and earning pride for the nation. The Indian diaspora is fast leaving its mark across various industries and becoming prominent in global conglomerates. This has earned India the reputation of a nation brimming with dedicated professionals who display exceptional skills and work ethics.
The constant debate on India v/s Philippines for offshore accounting needs puzzles companies abroad. While both have their merits, India has surpassed Philippines due to its higher availability of qualified professionals, better time zone advantages, cost benefits, and the overall quality of work. Thus, making it the trusted choice for not just the Big Four, but also thousands of large and mid-sized firms particularly in the US, UK, Canada and Singapore.
Offshoring your accounting firm needs to India has a variety of benefits for companies across sizes. From near-native speaking, highly-skilled professionals to opportunities to save time and cost by letting experts handle your accounting, the world is turning to India to strengthen its own financial growth trajectory. Find out how offshoring your accounting services to us can help your business. Contact us today.
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