What's Happening?
U.S. CPA firms are increasingly building offshore teams in India to address a domestic accounting talent shortage. The U.S. accounting workforce has shrunk by 10% since 2019, prompting firms like RSM US, Moss Adams, Sikich, and CohnReznick to expand their
operations in India. These firms are leveraging India's large professional services workforce and established global delivery infrastructure to handle production capacity while retaining client relationships and technical judgment onshore. The move aims to create a hybrid workforce model that balances onshore expertise with offshore production capabilities.
Why It's Important?
The expansion of offshore operations in India reflects a strategic response to a structural capacity problem in the U.S. accounting industry. As demand for accountants continues to grow, firms are seeking ways to maintain service levels without overburdening their domestic workforce. By utilizing India's time-zone advantages and skilled labor force, U.S. firms can extend their production cycles and improve efficiency. This approach also highlights the evolving nature of the accounting profession, where technology and global collaboration are becoming increasingly important.
What's Next?
As firms continue to build offshore teams, they will need to focus on integrating these teams into their operations effectively. This includes providing training in U.S. accounting standards and ensuring secure, documented workflows. Firms will also need to address challenges related to data security, retention, and cultural integration to maximize the benefits of their offshore operations. The success of this strategy will depend on the ability to maintain high-quality service delivery while managing the complexities of a global workforce.
