Outsourcing of accounting/finance?

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Discussion Overview

The discussion revolves around the outsourcing of accounting and financial services, exploring the reasons behind the perceived lack of a significant outsourcing frenzy in this sector. Participants examine trends, economic implications, and the current state of the industry.

Discussion Character

  • Debate/contested
  • Exploratory
  • Technical explanation

Main Points Raised

  • Some participants note that outsourcing in financial services began around 2002-2003, with firms like J.P. Morgan and Morgan Stanley outsourcing financial analysis and research to India.
  • It is mentioned that the credit and collection industry is experiencing significant growth in India.
  • One participant suggests that the trend of offshoring is becoming normalized, arguing that it can lead to more efficient resource allocation in the economy.
  • Another viewpoint emphasizes that companies outsource primarily for cost savings, particularly highlighting the cheaper labor available in India.
  • Some participants express uncertainty about the future job outlook in accounting, suggesting that while some functions are outsourced, the overall demand for accounting jobs is expected to grow.
  • There is a mention of potential influences on outsourcing trends, such as new healthcare laws, though this remains speculative.

Areas of Agreement / Disagreement

Participants express differing views on the extent and implications of outsourcing in the accounting and financial services sectors. While some acknowledge that outsourcing is occurring, others question the overall impact and future job prospects in the field, indicating that the discussion remains unresolved.

Contextual Notes

Participants reference various sources and reports to support their claims, but there are no definitive conclusions drawn regarding the future of outsourcing in accounting and finance.

avant-garde
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Why isn't there an accounting/financial service outsource frenzy?
 
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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.
 
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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.)
 
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:
 
I agree, you can achieve more with less through outsourcing and with real-time access to skilled people.
 
Last edited by a moderator:
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:

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