The Philippines is now being claimed as a “go-to” destination for outsourcing activities.
When you consider the high cost of compliance in Australia, there was very little or no difference in quality and a significant saving in costs…
Not all accountants, however, are sold on the idea of outsourcing.
BPO isn’t right for every situation, but expert groups argue it is now a mature feature of the business landscape.
Australia’s Accounting Professional & Ethical Standards Board issued a set of guidelines in 2013. Firms should therefore disclose those work parameters in any engagement letter with a client. That letter should also make clear if the BPO contractor is 100 per cent owned by the accounting firm or is an external contractor.
Outsourcing’s tough reality
Up to 50% of offshoring operations fail in the first 2 years…
One Australian firm opened a serviced office in Manila in 2010, but was disappointed to find that employees in Manila appeared to job hop every two years or so. “We would spend all the time training and we would lose them to someone else”.
Add to that wages that rose rapidly, as much as 20 per cent a year. Perhaps most importantly, the firm struggled to make the Manila-based employees feel truly connected to the Australian-based team.
So they closed the Philippines office in late 2014.
More information available from CPA ITB.