What kind of cost savings can be expected by outsourcing to India?
Outsourcing work to India can result in savings of up to 50% or more. As The New York Times reported: “The reason for the shift [to outsourcing] echoes the reason companies are sending other work abroad: they save substantial amounts of money. Some companies say they can reduce certain costs by as much as 50 percent, and receive work that rivals what they can obtain in the United States”.
The financial advantages of outsourcing to India that can accrue to our clients are seen not only in the well-known differences between salaries and costs of living among the workforces of the U.S. and India, but also in the price of office space, which is ultimately paid for by clients. Many traditional firms locate virtually all of their personnel in relatively expensive offices in the largest cities in the United States and the United Kingdom. This tradition has led to a situation in which most of each dollar or pound that these firms charge their clients pays for office rent. In India, the employees work in state-of-the-art facilities at 1/20th the cost of comparable space in major U.S. cities (and at far lower cost than Indian cities such as Mumbai, Bangalore, and Delhi/Gurgaon).
You know exactly what your costs will be for each job processed as it is fixed. This means that the time consuming compliance element is handled for you at a far lower cost than you could do it internally leaving a higher margin for you.
Reduced “on costs.”
With staff performing more productively your fee base will grow but there will be no spiraling of “on costs” such as accident compensation, sick leave, annual leave, hiring of short term staff, etc. or other on costs. An intangible, but nevertheless real, benefit is that you no longer have the stress of dealing with under performing staff. The preparation work is now performed by highly trained and dedicated contractors
Professional development more effective.
You can focus on developing your team knowledge and skills in the areas of most value to your clients because they will have the time and attitude to make this professional development most effective. Time consuming training in mundane, compliance processing matters is no longer a demand. That is the outsourcer’s responsibility; your only requirement is to keep your team up to date.
Staff morale improves.
This is a major benefit. With the need to do time consuming compliance work team members perform more enjoyable and rewarding activity and are happier. The whole atmosphere of the practice changes and, although almost impossible to accurately measure, a best guess assessment of around a 25% improvement in morale is realistic.
Savings in staff costs.
Significant further savings will be made in future years as staffs that leave are not replaced. Couple this with the growing confidence and skills of staff to handle higher value work and the dramatic reduction in *staff costs as a percentage of fees will continue.
We are confident that our processing fees are the lowest in the market which quite simply means that the profit on your compliance work will be far greater than you could achieve internally.
Moreover, by capturing and storing all your clients’ accounts and tax related information in electronic format, you get advantage of the not only latest technology and ensure improvement of workflow, fasten your tax preparation and finalization of accounts process, but also make your firm paperless.