The recent online Accountex UK Summit saw AdvanceTrack MD Vipul Sheth lead a 45-minute session giving a really concise and useful roundup of what goes on in the outsourcing industry, and how firms can make outsourcing work for them.
In ‘The good, bad and ugly of offshoring and outsourcing’, Vipul started with ‘the ugly’. There are lots of horror stories told by accountants who have had bad experiences with outsourcing.
“One of the things we often hear is: it doesn’t work. In many cases that can be true,” said Sheth. “One reason is a lack of tech. A lot of people in the industry don’t have the tech to manage outsourcing effectively – whether that’s the firm, or sometimes the outsourcer or offshorer. Without tech it can’t be managed successfully, or at scale.”
The ‘real horror’ is the lack of security protocols in place. “We do hear of outsourcers with little regard to these,” he added. When it comes to ‘the bad’, poor communication between the outsourcer and accountant is at the fore. “We’ve improved over the years,” said Sheth.
Secondly, outsourcing can be seen as a short-term solution to a workflow ‘problem’. “However, this means it’s not usually managed and put together effectively. Outsourcing is not a magic wand to ‘wave’; there needs to be thought.”
For ‘the good’, Sheth said that “we want accountants to go and help their clients more”. “What can you use your extra time created by outsourcing to do? Clients really want your help – and if you can demonstrate value then they will rarely question their fee.
The firms we serve have increased revenues through the pandemic. “They have capacity to drive growth, and offer new services. We’re seeing them offer bookkeeping in the cloud; lots of virtual FD/FC services – getting under the bonnet of client data and feeding back analysis to clients. It gives them a place in clients’ ‘boardroom’,” he concluded.
• Visit https://summit-uk.accountex.co.uk to access this archived recording, along with all the other sessions