Accountants outsourcing their work in countries like India and Philippines
Many accountants in Australia are shifting large proportions of their operations offshore to countries like India and the Philippines where workers can be paid as little as $5 an hour to complete time-consuming compliance work.
While legal, many consumers are unaware of this practice as they are not told who is personally processing their tax returns or handling the back end of their financial affairs. The only disclosure comes in the fine print buried within an engagement letter. This means many consumers are paying a premium for accounting services, without knowing that the person providing the service is based somewhere such as Bangalore, earning way below the Australian minimum wage.
Amanda Newton, of Melbourne’s Negotiis Business Advisors and Accountants, has witnessed many accountants boast about boosting their profit margins by engaging offshore labour. She believes the practice is widespread in Australia, yet most clients remain unaware that it is occurring. Employing eight local staff including a graduate, Negotiis Advisors doesn’t use offshore staff despite the considerable cost savings on offer.
While many Australian accountants continue to resist the trend, many more are taking advantage of the immediate cost savings available. Whether this is a sustainable approach to doing business is yet to be seen, as are the potentially detrimental long-term impacts on their brand, business and the local economy.
Source: Accounting Weekly
