What are the possibilities in outsourcing back-office accounting work? Outsourcing to off-shore locations, like India or Pakistan etc.
Any ideas or experiences?
Faisal bhai, there certainly is offshore accounting going on, I've heard about it but not too much in detail.
I believe HR send a significant amount of the annual crunch time accounting work back to India to be done. Dont think its been done at the corporate level where the accountants are looking for loopholes a lot of the times, but certainly for the basic simple tax returns theres is a push to send it overseas since it ends up been cheaper. Most likely the next thing to go overseas would be the corporate financial reports which tend to be rather standardized.
Faisal,
There is tons of it going on. You have people having their AP/AR, Billing invoicing, recon done out of India. The largest guys are the Big 3-4, with their own captives. The most movement from a third party perspective is from the tier II and III accountacies. Some of the work is seasonal, like tax return filings etc but a lot of them get their rules based monthly or quaterly reporting done out of India.
There is also a new zest for offshoring within the fund accounting industry. Subprocesses such as recon, tax reclaim, NAV and investor reporting for wrap fee and managed accounts for Hedge/PE funds.
Also, investment banks, investment management firms and custordy houses are also getting some work done in this area. This is where the volumes are the largest.
hope it helps. Let's start a business yaar. You and me... let's open one center in Delhi and one in Lahore/Karachi. Th eonloy problem is if delhi blows up so will karachi so country risk and BCP?DR is an issue. But we can get over that little hurdle by opening a third facily in Switzerland. :)
So, whats the business model. Folks in US scan every thing and email over to India, where taking advantage of the time difference, folks enter it all day into the accounting system?
Is that how its done?
You mentioned Big 4 doing it... What are they doing? Accounting work for their clients?
Anyway, you can get me in touch with someone who is actually doing it?
Thanks
Ovex Technologies in Pakistan is doing that, there office is located in the software technology park I (next to marriot) in Islamabad
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*Originally posted by Faisal: *
So, whats the business model. Folks in US scan every thing and email over to India, where taking advantage of the time difference, folks enter it all day into the accounting system?
Is that how its done?
You mentioned Big 4 doing it... What are they doing? Accounting work for their clients?
Anyway, you can get me in touch with someone who is actually doing it?
Thanks
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It depends, some svan and sen tthe work over some have fat peipes intot he client systems and all the work is done remotely but saved an downloaded on client side.
Most BPO is not done on a24/7model. Offshore teams are an extension of your enterprise so they work your hours.
I can get you in touch wiht a few folks. Drop me a PM.
I Know for sure that a lot of Back office Accounting is out sourced to India and one instance that I can confidentally quote is Swiss Air, and its not something new, Swiss Air for more than a Decade has been sending its Audit Coupons, Travel Agents Accounting Coupon and also Uplifted Coupons from the Air port from all over the world to India for Accounting.
I should Know being a Travel consultant and all. :D
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*Originally posted by Aejaz: *
I Know for sure that a lot of Back office Accounting is out sourced to India and one instance that I can confidentally quote is Swiss Air, and its not something new, Swiss Air for more than a Decade has been sending its Audit Coupons, Travel Agents Accounting Coupon and also Uplifted Coupons from the Air port from all over the world to India for Accounting.
I should Know being a Travel consultant and all.
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Any other airlines you know that does it... preferably an airline that is based out of the US?
BA does it with a company called WNS in INdia. Delta with Daksh, now an IBM sub, there are other travel related work. But this is not true accounting. These are more book keeping, billing recon. customer queries.
I got your message. I am working on a couple of things..wil get back to you soon.
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*Originally posted by Matsui: *
hope it helps. Let's start a business yaar. You and me... let's open one center in Delhi and one in Lahore/Karachi.
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Me too, me too...
need some bus dev/mkt brainpower?
P.S. I can also make chai