Outsourcing of accountancy services : a study of local accountancy firms' perspectives

Abstract

Through innovative outside relationships, organizations are aggressively reshaping themselves and fundamentally changing the way they do business. Outsourcing is just one of the many resources that are available to companies and is becoming increasingly essential for companies to prosper in today's competitive environment. It refers to the work done for a company by people other than the company's full time employees. Like many other organizations, accountancy firms around the globe are also being faced with the option of outsourcing any of their services to third-parties, whether locally or overseas. Outsourcing is offering ways for firms to provide service, cut expenses, and raise profits on outsourced services. However, it also carries with it certain implications and possible drawbacks. This study was conducted to highlight the perspectives of local accountancy firms regarding the outsourcing of accountancy services. In fact, it explores the awareness of such firms on this issue and moves on to identify what these firms believe to be the main reasons and benefits as well as drawbacks behind outsourcing. It also examines their opinion on various other aspects and issues that need to be tackled by their firm to carry out outsourcing. According to this study, the majority of respondents have a positive opinion on outsourcing and feel it is useful in today's environment. However, the majority of respondents do not believe that such a strategy will become indispensable in the future.