Best Countries for Financial Outsourcing
Countries that have a relatively low cost of living are the most preferred finance outsourcing destinations; this is so that companies can leverage the reduced cost of wages in these countries. Companies can have a pick of outsourcing countries in Eastern Europe and Asia that offer highly talented and motivated accounting and bookkeeping specialists that can be tapped for finance outsourcing.
For instance, in Eastern Europe, many countries offering outsourcing have economies that offer lower upfront costs—coupled with in-demand skills, including financial management, accounting, and bookkeeping—than in destinations with more developed economies. In Asia, a large pool of technically proficient experts are waiting to be tapped for outsourced work. Quite a few good schools and universities in Asia produce a huge number of industry-ready graduates on a yearly basis. In fact, Asia has been consistently producing some of the top mathematical, engineering, and accounting graduates that are ready to step into the workforce and showcase their world-class skills.
The following are the three best countries for financial outsourcing.
India is one of the most popular countries for outsourcing, where it started to take root in the early nineties, first with airlines deciding to outsource their back-office work and then with IT companies and call centers following suit. This influx of business into India via outsourcing work has prompted the country to develop its infrastructure. Today, India has one of the fastest-developing infrastructures, with a 25 to 30% annual growth rate.
The National Association of Software and Services Companies reports that a total of 1.1 million people worked in the Indian BPO industry in 2017. The report adds that India’s IT-BPO industry expanded by 8 percent in the same year, reaching $154 billion in total revenues. and contributing 7.7 percent to the national GDP.
The country also boasts one of the fastest Internet connections worldwide, so companies outsourcing to India needn’t worry much connection and communication hitches. The government of India has also invested much in technology, making things better for outsourcing companies.
Pankaj Dave, a Senior Partner at B.M. Chatrath & Co in India, said that organizations save about 30-50% of their costs when outsourcing,
Malaysia produces world-class accountants and bookkeepers, mostly from the nation’s capital Kuala Lumpur, as well as Selangor and Johor. In a report by research firm IDC showed that Malaysia finance and accounting outsourcing services market was expected to grow from $537.78 million in 2011 to $997.39 million in 2016, with an annual growth of 13.1% over the forecast period.
Accounting and financial-management professionals in Malaysia are experienced in providing the following outsourced functions: forecasting, budgeting, and monitoring of cash flows; preparing monthly consolidated accounts; reviewing and analyzing financial results; designing accounting templates for operational and reporting purposes; and even setting up of accounting operating procedures and internal controls, among others.
The Philippines is one of the best countries to consider if a company wants to outsource its financial functions. According to the ASEAN Briefing document, the Philippines is among the top 3 locations to outsource professionals in IT-BPO sectors such as accounting, engineering, health care, finance and other non-voice, complex services.
Filipino accountants, bookkeepers, and financial managers are therefore able to tackle a wide range of financial processes that include bookkeeping, payroll processing, financial reporting, tax compliance, audit services, and even bank reconciliation for clients. They adhere to an excellent work ethic, observing values such as hard work, integrity, and honesty. One added advantage is that Filipinos are fluent in English. Accounting jobs in the Philippines are viewed with a certain amount of prestige, often at par with professions such as doctors and lawyers and university professors.
The finance and accounting industry in the Philippines has grown over the years and is still growing at a rapid rate. The country is seeing an increasing number of investors, largely multinational companies from all over the world, that are choosing to outsource their financial and accounting functions to the Philippines.