Outsourcing has been around for hundreds of years and in the accounting industry over the past few years outsourcing has shifted from a niche strategy to a dominant one used by a number of firms. Originally we saw that the larger the firm, the more likely they were to outsource. Now we are seeing an evolving trend of smaller firms who are benefitting greatly from outsourcing tasks whether they be accounting or other internal tasks like marketing. The major reason companies used to outsource was to reduce cost or headcount but in today's world there are so many more predominant reasons. The main driver being a strategic advantage by allowing the in-house staff to focus on the businesses core value adding activities.

1. Grow your firm by leveraging
technology and outsourcing
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2. 1. Outsourcing introduction
2. Business processes that are outsourced
3. Why do companies outsource?
4. When to outsource
5. Who is doing it?
6. Top market
7. How can you do it
8. The technology behind outsourcing
9. Benefits of outsourcing
10. Outsourcing pitfalls
11. Infrastructure
12. Questions to ask when you consider outsourcing
13. What next
14. Team and experience – Ravi Kurani
15. Questions
Agenda
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3. Definition
A practice used by different companies to reduce costs by
transferring portions of work to outside suppliers rather than
completing it internally.”
What is outsourcing
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4. http://www.brainstormmag.co.za/index.php?option=com_content&id=673:outsourcing-timeline
Outsourcing history
Adam Smith, formulates
theory of competitive
advantage extracting the
notion of outsourcing
1776
1930s
Textile industry work is
outsourced to England
1960s
Outsourcing becomes
very profitable with the
advent of the WWW
Computer companies
outsource their payroll
1970s
1980s
Accounting services,
payroll, billing, and word
processing outsourced
1989
Outsourcing is formally
identified as a business
strategy
1990s
Became common to
outsource tasks with
massive information
handling such as data
processing
2003
Outsourcing accumulates
$298.5 billion in global
revenues
Outsourcing was one of the
topics of debate between
the candidates in the U.S.
presidential election.
2004
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5. o Finance and accounting services (most common being tax preparation and payroll services)
o Contact center services
o Healthcare services
o Human resource services
o Software development, testing and maintenance
o Web design
o Manufacturing
o Data entry services
o Virtual assistance services
o Market research and development
Common business process that are outsourced
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6. Specific business processes being outsourced in the accounting industry
Order to cash
order management, billing, accounts receivables, cash receipts and application, credit
and collections, bank reconciliations
Purchase to
payment
purchase order management, vendor management, cash disbursement, bank
reconciliations, contract administration, cost accounting, fixed assets
Hire to retire
payroll, benefits administration, employee data administration, pension accounting,
travel and expense compliance
Financial
reporting
general accounting, consolidation and management reporting, intercompany
allocations, activity based costing, reconciliations, project accounting, tax compliance,
tax returns
Compliance and
control
cash management, treasury, budgeting, forecasting, regulatory reporting, risk
management
Source: ICAEW report
Finance and account outsourcing

7. Why do companies outsource?
o Focus on core business
o Reduce costs
o Increase spend to market
o Foster innovation
o Conserve capital
o Improve work quality
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8. Form strategic
alliance
Retain
OUTSOURCEEliminate
Strategicimportance
Contribution to operational
performance
HighLow
Low High
Outsourcing decision matrix
When to outsource
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9. Major global players in offshoring of finance and accounting
Company (HQ location) Locations Offshore revenue
Accenture (US) India, Philippines, Spain, China, Czech Republic,
Slovakia, Brazil, Australia
Over US$5 billion
Hewitt Associates (US) India, China, Philippines, Thailand, Malaysia, Czech
Republic, Poland, Hungary, Brazil, Mexico,
Argentina, Chile
over US$5 billion
IBM (US) India, Czech Republic, China, Australia US$1–5 billion
Tata Consultancy Services (India) India, Hungary, Brazil, Uruguay, China, Chile US$1–5 billion
Wipro (India) India, Canada US$1–5 billion
These firms utilized the outsourcing model and experienced huge benefits
Who is doing it?
Source: CPA Australia
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10. Who is doing it?
68% 62%
53%
23%
28%
30%
9% 10%
17%
UPTO 2008 2009-12 2013-14
Large market
Mid market
SMB
Source: FAO annual reports 2015
There is an increase in outsourcing contracts by the SMBs
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11. Asia Pacific is the top market for Finance & Accounting outsourcing
Top 5 outsourcing destinations in 2015
Bengaluru, India (1)
Manila, Philippines (2)
Mumbai, India (3)
Delhi, India (4)
Chennai, India (5)
Source: June 2015 PM Network Magazine
Top market
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12. Your worries:
o Do not have the knowledge
o Lack of experience
o Do not have sufficient capital
o Do not have enough time to set up
facilities offshore
How can you do it?
Solution:
There are a number of outsourcing firms that
partner with small – medium size accounting
firms such as yours to offer you the benefits of
outsourcing with none of the management or
internal worries
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13. Secure server based solution
1 – SCAN & UPLOAD
You scan and upload files to the outsourcing
companies secure server
2 – RECEIVE
The outsourcing companies team records all
source items into their system and produces
your accounts
3 – COMPLETE TASKS & REVIEW
Work is completed and reviewed before it is
submitted to you
4 – SUBMIT
Following your approval the final working
papers are made available to you
Technology behind outsourcing
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14. 1 – INSTALL SOFTWARE
Outsourcing company provides you with software
to install on your system
2 – REMOTE LOGIN
Using this software the outsourcing company
remotely logins to your system
3 – COMPLETE TASKS & REVIEW
Work is completed and reviewed before it is
submitted to you
4 – SUBMIT
Following your approval the final working papers
are made available to you
Technology behind outsourcing
Remote access based solution
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15. o Increased efficiency
o Lower operational costs
o Improve margins
o Save time
o Reduced staff turnover/growth
without overheads
Benefits of outsourcing
o Get a competitive advantage
o Acquire flexible resources
o Be compliant
o Access best practices
o Level the playing field
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16. Before After
Benefits of outsourcing
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17. Save against current costs for
accounting, VAT, bookkeeping
and tax.
Grow business without being
bogged down with the
bookkeeping.
Cover the workload of staff
who have left.
Take on more business without
the need for costly recruitment
or investment in staff.
Benefits that work for you
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18. o Pre-defined SLAs and KPIs with regular reporting
gives you full control
o Manage the workforce in your own way through a
single-point-of-contact located offshore
o With advances in technology, virtual communication in
the form of face-to-face meetings is possible through
video conference facility
Control
Outsourcing pitfalls
How to avoid:
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19. o ISO 27001:2005 is demonstration of an outsourcing
supplier’s IT security risk-management capabilities
o Suppliers internal processes – if possible visit them
o International Private Leased Circuit (IPLC)
connectivity
Security &
Confidentiality
Outsourcing pitfalls
How to avoid:
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20. Security
o ISO certification
o Regular ISO audits
o USB port, CD/DVD ROM disabled
o Restricted printer access on all PCs
o Defined computer access policies
o Firewall for content filtering
o 24x7 physical security
Outsourcing companies take extra measures to keep your data safe.
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21. o Evaluate the company background
o Talk to existing clients
o Evaluate the management team’s experience
o Spend time with the team
Cultural differences
Outsourcing pitfalls
How to avoid:
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22. o Check for existing processes
o Are they flexible to integrate with your processes
o Process certification such as ISO 9001
o Reporting mechanism
o Feedback internalisation
Poor quality
output
Outsourcing pitfalls
How to avoid:
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23. o Deal with an established company
o Check the companies track record
Financial
instability
Outsourcing pitfalls
How to avoid:
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24. o Do not ship documents overseas
o Look for an end-to-end service provider
o Access to the scanned documents for back-up
Infrastructure
Outsourcing pitfalls
How to avoid:
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25. Outsourcing does not mean you have a person working in his bedroom but there are
companies with good infrastructure
Infrastructure
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26. Next room telephony
• IPLC leased lines ensure quality
and desk-to-desk telephony with
calls charged as local rates.
Group service support
• Finance, personnel, HR,
marketing and IT support.
Video conferencing
• Virtual communication in the form
of face-to-face meetings is possible
through a video conference facility.
Global connectivity
• Internet Leased
• International Private Leased
Circuits (IPLC) via different trans-
world routing.
Infrastructure
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27. 1. Is there a high staff turnover?
2. Is there a high capital cost?
3. Is a process taking up too much of the managements’ time?
4. Is the service not part of your Core operations?
5. Are the technology demands high?
Questions to ask when you consider outsourcing
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28. What next?
Robotic Process Automation (RPA)
RPA is the application of technology to automate processes in a
company using “robots”. Any company that uses labor on a large
scale for general knowledge process work, will boost their
capabilities and save money and time with robotic process
automation software.
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29. What next?
Some of the areas where RPA can help organizations improve working capital and
enhance productivity and efficiency.
o Process having structured input source
o Remote management of IT infrastructure
o Customer service centres handling high call volumes
o Data transfer across multiple systems
o Data being collated from multiple sources
Source: xchanging.com
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30. What next?
In Finance and Accounting Outsourcing, RPA is delivering multiple benefits. This will
enable companies to improve response time to new markets.
Cost savings Enhanced accuracy
Scalability Increased compliance
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31. Ravi Kurani, Director, QX Limited
Ravi Kurani is an MBA (Finance) from Australia and has over 15 years of
experience in the outsourcing industry. He works closely with companies
in the UK/USA to assist them to define their India strategy, to achieve
efficiencies in the UK/USA and has responsibility for transition and
implementation of QX services. He is a COPC ® certified professional.
Back Office & BPO Expertise (US & UK)
• Phone, Email & Chat Support for
 Two Largest Online Retailer (USA)
 BNY Mellon Bank (USA)
 DishTV
Deliverables & Achievements
• Handling of over 1M emails and over 500,000 Inbound calls
annually for two of the largest online retailers
• Handling of over 3.8M transactions for one of the USA largest
bank (BNY Mellon Bank)
• Handling of over 100,000 inbound customer calls for DishTV
towards order confirmation and cross selling of products
Team and experience
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32. Contact us248 Lorraine Avenue
3rd floor, Room 11
Upper Montclair
NJ - 07043
Tel: 1-800-310-9312
Email: contact@qxas.us.com
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