Companies in Western Europe are always looking to cut costs by outsourcing overseas. One of their top priorities is to generate maximum revenue by employing latest technologies by getting a 24-hour (virtual) office with skilled employees that cost only 1/3rd of any in-house team.
Traditionally many believed that European firms typically prefer to send their jobs to nearby locations for curbing the problem of not getting similar time zones. However, many reports have revealed that more than 65% of European firms intend to send their work to India.
Some of the major risks identified by financial services organisations that are a deciding factor for European ACCAs and Accounting Firms to outsource to offshore accountants in India are:
• Finding/attracting people of right quality
• Deteriorating quality of service in their local accountants
• Rising wages of the local accountants
• Cost over-runs; because small-sized companies cannot afford to pay hefty fees to in-house team when they can get the same amount of work done for half-the-price.
• Inadequate level of compliance and internal control
• Impact on management time
• Security of intellectual property;
• Security of client data
• Political and regulatory risks in home market