Future trends in Offshored Outsourcing for the accounting profession

Offshoring used to be a dirty word in the world of accounting. It was once seen as the indicator of a lower quality service.

However, prejudices about this type of outsourcing have quickly melted away as it became clear that offshoring could help firms achieve even more for their clients – often without the expense of having to hire and retain talent.

The first to pick up on the trend were large, multinational firms, but offshored accountancy has rapidly

become an accessible and strategic tool for accountancy firms of all sizes. As we look towards the future, several emerging trends promise to reshape the landscape of offshored outsourcing in accountancy.

Understanding these trends is not just useful – it’s imperative for firms aiming to stay competitive and efficient in a rapidly globalised market.

Embracing technological integration

The integration of cutting-edge technologies with offshored services is set to deepen. Cloud computing, automation and artificial intelligence (AI) are revolutionising how accountancy tasks are performed, enabling more complex and sensitive tasks to be offshored with a higher degree of security and efficiency.

Firms that leverage these technologies can expect not only to streamline operations but also to enhance the accuracy and reliability of their work.

However, investment in these areas is not without challenge and the economies of scale offered by outsourced accountancy services means that choosing to offshore can grant firms access to this technology at a lower cost through these partnerships.

The rise of specialised outsourcing

As the global business environment becomes more complex, there’s a growing demand for specialised tax, audit and accounting services.

Offshored outsourcing is expanding beyond traditional bookkeeping and payroll services to include areas like tax planning and even advisory services.

Just look at the launch of our new outsourced accountancy service, with our team based in South Africa, to see how we are adapting to this demand within the marketplace.

This trend towards specialisation means that firms will not just look for the lowest cost providers but for outsourcing partners with specific expertise and qualifications – but equally importantly the right values, approaches and ethos.

Increased focus on security and compliance

Data security and regulatory compliance have always been critical concerns in offshored outsourcing. However, in the future, these will become even more paramount.

With the General Data Protection Regulation (GDPR) in Europe and similar laws in other jurisdictions, accountancy firms will need to ensure that their offshored partners are fully compliant with international data protection requirements, as well as the latest global accounting standards.

This will likely lead to more rigorous vetting processes and a preference for outsourcing partners in countries with robust legal frameworks for data protection and intellectual property rights.

Closer, collaborative relationships

The traditional view of offshored outsourcing as a mere cost-saving measure is evolving. Firms are beginning to see their offshored partners as integral to their business, essential for providing value-added services rather than just cutting costs.

This shift is fostering longer-term, strategic relationships that focus on mutual growth, innovation, and the development of bespoke solutions.

As a result, communication, cultural understanding, and relationship management skills are becoming as important as technical capabilities. This is an area where we have placed a considerable focus since our founding.

Globalisation of labour markets

Globalisation is making the world smaller, but the economic landscapes are becoming increasingly complex.

Changes in immigration policies, trade agreements, and economic sanctions can all impact the viability of offshored outsourcing arrangements.

Accountancy firms will need to stay agile, with a keen eye on global trends and a readiness to adapt their outsourcing strategies in response to changing global dynamics.

The future of offshored outsourcing in the accountancy profession has never been brighter and brimming with potential.

Even if firms currently do not rely on outsourcing, they should stay on top of the latest trends so that they can leverage offshored outsourcing to enhance service quality if they need to.

Want to learn more about our offshored outsourcing services and how they can help your firm, please speak to our team.

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