The accounting industry is constantly evolving – market conditions, an unsteady economy, changes in regulations, and capacity challenges are some of the factors that make an impact. But their ability to quickly transform according to the changing market conditions and customer needs, the business’s ability to remain agile makes a massive difference. To remain ahead of the competition, there is a constant need to respond to these conditions. Small accounting firms constantly run a risk of becoming irrelevant and that is where the need to remain flexible and responsive comes into the picture.
Outsourcing has become a predominant tool to help achieve these. However, one of the major apprehensions about the model’s limitations is about flexibility and responsiveness. This fear stems from concerns about time zone differences, cultural barriers, and potential delays in communication and decision-making.
Let us delve deeper to understand these fears:
Apprehension vs Reality:
- Time zone differences:
Apprehension:
Time zone differences will lead to massive delays in communication and decision-making. This reduces the overall responsiveness of the business, causing discomfort to the end clients.
Reality:
While time zone differences can be perceived to pose challenges, the reality is actually beneficial for accounting firms. Most outsourcing partners maintain a “follow-the-sun” model. This essentially means that the outsourcing teams work when the accounting firms are away, and have teams working in the same time zone. This implies that all your pending work will be done while you are resting. This ensures constant progress and timely completion of tasks. Effective use of overlapping hours and clear communication schedules can minimize delays and enable firms to provide better services to their clients. Most outsourcing firms have flexible teams that work in different shifts to cover all time zones.
- Cultural misalignments
Apprehension:
Since the offshoring partners belong to a geographically different country and cultures, there will be misunderstandings, inefficiencies, and huge gaps between the external and internal teams. It might also result in outputs that aren’t expected.
Reality:
After the pandemic, most organizations are looking for cross-cultural teams. Reason? They bring different perspectives to the table, which benefits overall organizational growth. The only thing needed to manage cultural differences is thorough cultural sensitivity. This can be achieved through training, open communication, and building a team of diversity and strong ethics and culture. As firm leaders, you must encourage teams to learn about each other’s cultures and work styles, fostering mutual respect and understanding. Most successful organizations have leveraged diversity to their advantage to bring innovation. Clear communication guidelines and cross-cultural training can help mitigate potential misunderstandings.
- Delays in communication
Apprehension:
Many accounting firm leaders believe that offshoring will result in slower response times and reduce agility due to a lack of understanding and delays in communication.
Reality:
Advanced technology has given us the gift of new-age communication tools, task management software, etc, which have greatly reduced the impact of geographical distances. During the pandemic, when all of us were confined within the four walls, we experienced the benefits of these tools and they continue to remain relevant. These tools allow instant messaging, video conferencing, real-time communication, and seamless collaboration. Accounting firms, when working with offshoring partners, should establish clear protocols, such as defined response times, regular check-ins, and timely updates. This will help ensure that the offshore teams remain responsive and agile. Having dedicated account managers can help streamline the process further.
- Quality of work
Apprehension:
Since offshore teams are an external entity to the organization, they will neither understand the goals and the vision nor will they be able to keep up with the standard quality. This could lead to inconsistencies and errors.
Reality:
In an offshoring arrangement, quality control is one of the major aspects. Reputable and experienced service providers are committed to maintaining high standards of quality. They have high-quality standards set within their organizations and have rigorous quality assurance in place. To ensure consistency, accounting firms should establish clear expectations, provide detailed guidelines, and implement regular performance reviews. By establishing these protocols, accounting firms see to it that offshore teams deliver work that meets or exceeds expectations and quality standards. Sometimes experienced outsourcing professionals can help improve the standards while bringing expertise.
- Control and coordination:
Apprehension:
Most accounting firms fear that when they outsource their practice, they lose control over the processes. They feel that the difficulties increase in task coordination as they have to deal with cross-geographical teams.
Reality:
Effective project management and coordination tools can help maintain coordination. When it comes to control, having an outsourcing team is similar to extending your internal teams. They only have access to information they have been provided with. Utilizing project management software, setting up shared workspaces, and maintaining open lines of communication can play a great role in control and coordination. Accounting firms must have a strong governance structure that helps all team members stay aligned with the business’s goals and standards.
Breaking outsourcing apprehension flexibility and responsiveness – Summary
The apprehension that offshoring limits flexibility and responsiveness is a significant concern for many businesses. However, it is important to make the right strategic decisions to mitigate these fears. Leveraging technology, using proper communication tools, establishing cultural understanding and effective quality control measures are some of the best ways to achieve the set goals.
Offshoring is not about compromising, it is about leveraging the tools and resources available to achieve a firm’s complete potential. Being aware, breaking the apprehensions, and embracing reality can help set the firms up for long-term success.
Want to know how outsourcing can help your business? Write to us at connect@finsmartaccounting.com.
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
