Outsourcing of accounting/finance?

  • Thread starter avant-garde
  • Start date
In summary, according to the job outlook, accounting is expected to grow much faster than average. Companies outsource because it is cheaper in India.
  • #1
avant-garde
196
0
Why isn't there an accounting/financial service outsource frenzy?
 
Physics news on Phys.org
  • #2
avant-garde said:
Why isn't there an accounting/financial service outsource frenzy?

There is no frenzy because the financial services started outsourcing around 2002-2003.

The offshoring trend has taken another surprising turn. Having successfully outsourced to India such back-office functions as IT, investment banks are now sending some of their financial analysis and research overseas. In recent months, firms including J.P. Morgan and Morgan Stanley have quietly hired Indian firms or set up their own subsidiaries in India to handle basic financial modeling and comparable analysis.

http://www.cfo.com/article.cfm/3011539

Bank of America started in 04.

http://www.networkworld.com/news/2004/0218bankofam.html?fsrc=rss-outsourcing

The rumor mill has it that a lot of the home forclosure and short sale data will be processed in India.
 
Last edited by a moderator:
  • #4
I remember reading last year that some bankers are migrating to Asia:

http://news.bbc.co.uk/2/hi/business/7410501.stm

I think people are just getting used to off-sourcing
(and economically, in my opinion, it helps a lot to stem out the inefficient industries lot quicker so that resources can be used by more efficient sectors. So, it is not as evil as one might see.)
 
  • #5
rootX said:
I remember reading last year that some bankers are migrating to Asia:

http://news.bbc.co.uk/2/hi/business/7410501.stm

I think people are just getting used to off-sourcing
(and economically, in my opinion, it helps a lot to stem out the inefficient industries lot quicker so that resources can be used by more efficient sectors. So, it is not as evil as one might see.)

More efficient sectors?? Companies outsource because it is cheaper in India.

About all we have left is a broken down auto industry and a couple of toilet paper factories. :smile:
 
  • #6
I agree, you can achieve more with less through outsourcing and with real-time access to skilled people.
 
Last edited by a moderator:
  • #7
avant-garde said:
Why isn't there an accounting/financial service outsource frenzy?

Some is getting outsourced, but according to the job outlook, accounting is expected to grow much faster than average:
http://www.bls.gov/oco/ocos001.htm"

Perhaps due to the new health care law? Don't know, but accounting is my major because of the ease of finding a job in so many different fields.
 
Last edited by a moderator:

What is outsourcing of accounting/finance?

Outsourcing of accounting/finance is the practice of hiring an external company or organization to handle the financial and accounting tasks of a business. This can include tasks such as bookkeeping, tax preparation, financial reporting, and payroll processing.

Why do companies outsource their accounting/finance?

Companies may choose to outsource their accounting/finance tasks for a variety of reasons, including cost savings, access to specialized expertise, and increased efficiency. By outsourcing, companies can save on labor costs, avoid the expenses of hiring and training in-house staff, and have access to a team of professionals with specialized knowledge and experience.

What are the benefits of outsourcing accounting/finance?

Some of the benefits of outsourcing accounting/finance include reduced costs, increased accuracy, improved data security, and access to advanced technology and resources. Outsourcing also allows companies to focus on their core business functions, rather than spending time and resources on non-core tasks.

What are the potential risks of outsourcing accounting/finance?

Some potential risks of outsourcing accounting/finance include loss of control over financial data and processes, communication issues with the outsourcing provider, and potential security breaches. It is important for companies to carefully choose a reputable and trustworthy outsourcing partner and establish clear communication and security protocols.

How can a company choose the right outsourcing provider for their accounting/finance needs?

To choose the right outsourcing provider, companies should consider factors such as the provider's reputation, experience, expertise in the specific accounting/finance tasks required, and their ability to meet the company's needs and deadlines. It is also important to thoroughly review the provider's contract and service level agreements to ensure they align with the company's expectations.

Similar threads

Finances of Public Medicine and State Schools
    • General Discussion
Replies
8
Views
572
Has this Twitter account been hacked?
    • General Discussion
Replies
12
Views
967
How to finance Markethero/Clickfunnels?
    • General Discussion
Replies
5
Views
965
Mathematics Behind Global Currency as a Wealth Inequality Regulation System
    • General Discussion
Replies
26
Views
1K
Insights The Lambert W Function in Finance
    • General Math
Replies
0
Views
1K
IT Outsourcing: Who's Responsible?
    • General Discussion
Replies
17
Views
6K
Reasons for the current FHA scrutiny of gifts?
    • General Discussion
Replies
4
Views
824
Can Home Repair or Renovations Reduce One's Taxes?
    • General Discussion
Replies
1
Views
796
News What is the impact of the Equifax cybersecurity breach on American voters?
    • General Discussion
2
Replies
36
Views
3K
How important is the work done by people who work in finance?
    • General Discussion
2
Replies
54
Views
3K

Hot Threads

Recent Insights

Back
Top