This week we thought we’d clarify more about the differences between Outsource Service providers and their poor cousin, the Offshore service providers.
Those who understand Compliance work, create Outsourcing companies
Those that can’t, create offshore companies
The Outsource services providers, such as Odyssey, are usually owned and operated by Australian accountants. The better firms are operated by Australian accountants who have had real Australian accounting compliance experience.
It’s usual to find that offshore services providers, even those proclaiming to be market leaders or market gurus, are usually not setup or run by Australian accountants. Without a basic understanding of what it’s like to be “in the trenches” servicing Australian accounting clients, then these firms can never truly create a service offering comparable to an outsource provider.
With significant experience in Australian accounting compliance work, Outsource service companies usually provide several significant advantages and opportunities:
Outsource firms usually train all their staff in a homogenized manner, such that each and every staff member is fully trained. Offshore services providers push the training back onto the Accounting firm engaging the staff member.
Outsource firms manage their staff members to peak performance using company wide remuneration systems. Offshore services providers push the responsibility for staff remuneration back onto the Accounting firm engaging the staff member.
Outsource firms manage jobs, and it is the responsibility of the outsource firm to deliver a high quality job within the agreed time frame. Offshoring firms completely avoid any responsibility for quality or timeframes by pushing this back onto the accounting firm.
One of the largest unspoken differences are that Outsource services providers are responsible for completing high quality work, which means massive investments in systems, procedures, processes, own working papers, own job management systems, and management on top. Sadly none of this is provided by an Offshore labour service provider.
As is fairly obvious by now, the Outsource service provider is a full buffet, while the Offshore service provider is just a labour hire company.