Accounting outsourcing in India is now beginning to attract a number of firms not only in the US but in Europe as well. This is a welcome development to the Indian government. Outsourcing in India of this kind of work are most welcome to boost their country employment efforts. There are many Certified Public Accountants or CPAs in India who are now employed because of accounting outsourcing.
This outsourcing of accounting to India is most beneficial to firms in the US because of time differential. Night time in the US is day time in India. Thus, if parts of an accounting project are outsourced to India, the continuity of accounting work is maintained night and day, resulting to a faster turn around time for project completion.
Many firms who are outsourcing accounting services to India save 30 to 50% in terms of salaries and wages expenses because of the low cost of labor in India. Aside from this, the fact that Indians speak fluent English, the firms outsourcing accounting to India can communicate easily with their Indian counterparts to discuss differing aspects related to their project. The political environment of India augurs well with outsourcing.
Talented economist and accounting professionals abounds in India. Because of outsourcing, their talents are now harnessed to assist in the preparation of various accounting works.
Peak season tax preparations are now outsourced to Indian accounting professionals. This will unclog the tables of US accounting firms and will enable them to concentrate more on high-end accounting activities. Firms who are saving on manpower cost are now outsourcing most of their accounting services to India. Even large corporations have their back offices not at their head office in the US but in India. Simple accounting works like payroll, accounts receivable and payables and other general bookkeeping jobs are now outsourced to India. This new procedure of outsourcing in India has made the processing effort for most companies easier and faster.
The success of accounting outsourcing in India is due to 3 basic reasons. The first is government assistance. The Indian government aggressively promotes their country as a haven for outsourcing. Companies are encouraged to put up their branches to serve as their back office for their world wide operations. Tax holidays for several years are given to these companies including other benefits. The second reason is the low cost of labor in India. Compared to other countries in Asia, India has one of the cheapest labors. And finally, the third reason will be their proficiency in their use of the English language.
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