1. 'Outsourcing' – a Professional avenue for Small and medium
accounting professional.
'Outsourcing' per se is not a new concept, ever since man has embarked the
road to civilisation he has started to realise and appreciate the importance of
outsourcing. Outsourcing in simple words is to let a third party do a job for us
so that one can concentrate on their core area of expertise. Not only does
outsourcing tend to produce quality results it also enhances ones capabilities
to excel in a his/her area of buisness if the objectives of outsourcing is entirely
dealt with.
Outsourcing industry is by and large classified into voice based, non voice
based and can be a combination of both. This classification has evolved over a
period of time and is largely influenced by the advent of the boom in the
sector during the previous and current decade. Voice based outsourcing is
where you either recieve customer calls or make calls to customers and liases
for certain products or resolve their queries. Voice based type of outsourcing
can range from simple query resolution to actually playing as a mediator
translating foreign languages to domestic or vice versa. This is also many a
times termed as Inbound and out bound voice processes.
On the other hand a Non voice outsourcing is wherein you handle and work on
projects hands on either using electronic media or actually handling paper
documents. These projects can range from a simple data entry, data typing,
updating books of accounts from scanned bills and invoices to audit sample
testing.
Outsourcing has become a major area of business since the IT boom and
gained recognition as a separate segment of business and line of activity.
Companies like GE, TCS, TESCO, Cap gemini, Accenture, igate and many
others have gained global reputation through handling outsourced projects
and servicing international client. Though most of the success is being
attributed to leverage of working over cost when compared to develpoed
countries, it is also a fact that outsourcing allows the company to grow and
venture into new areas of business.

2. Outsourcing of professional services like accounting, financial, auditing, legal is
not really new concept. There has always been of some kind of outsourcing of
work eg : Job typing of legal documents, audit reports etc and handling of
services like a VAT consultant, Central excise consutant etc etc... Only
difference then and the modern definition of outsourcing is the professional
approach and enhanced quality of service topped up with subject matter
expertise. Today an accounting professional can venture into the field of
Payroll services, Billing services, Accounts updating services, statutory return
services like VAT Returns, TDS returns, annual returns etc. Accounting
professionals can seggregate these activities into routine work and annual
statutory audit work to have a better clarity of work. These allied activity can
be alligned into a seperate segement of professional service leading to not
only enhanced client satisfaction but also creating jobs and subject matter
experts.
Identifying areas of outsourcing in a clients business is crucial as there will
always be a resistance to adopt and accept the change. This needs indepth
understandig of the clients businesses, identifying likely areas of outsourcing
and providing him with a business plan that projects success, growth and
value addition to the business as a whole. This phase in an outsourcing
industry is known as Discovery phase or such other like terminology.
Once the areas are identified - A service level agreement (SLA) with the client
will spell out the areas of service, corresponding deadlines and other project
specific information which will stipulate guidelines of professional service and
lines of authority, reporting and delegation. Proper work flow design as to how
the work will be handled and the services rendered will be usually a task of
showing and educating the cleint to the new style of work environment and
gaining confidence. On the other hand managing projects like account writing
and maintainence etc calls for a detailed thourough understanding of the
nature and type of clients business, knowledge of the accounting software,
any application tool and also business requirements. Such knowledge is gained
either on the job during the initial stages of the project or by simualting real
time scenarios at the work place.

3. A step by step documentation of work (Process flow diagram) will usually
ensure a smooth and continuos flow of work. This will serve as a guide to all
the personnel working to be on the same page. Such type of process
flowcharts will enhance key learning by all the staff including any new recruits
rather than concentrating information to key personnels and in case of
absentism. These process flows charts can be tracked with time to manage
ones time accordingly. A time tracker will let us understand the amount of
time taken and provide for the same for future references.
Any issues encountered during the day to day can be maintained in an issue
query log which over period of time will identify areas of concerns and
necessary actions under different circumstances of routine and repetitive
nature. Such a log can help fix a turnaround time(TAT) for resolving and
handling instances over a period of time.
A review meeting can be held from time to time as per convenience to reveal
progress, areas of concerns and likely areas of improvements. A face to face
interaction with the client will help restore confidence and trust.
As the SLA will bring out the terms of billing and professional fees eg :
whether the billing will be based on Full time Employees(FTE's), number of
trasactions handled, or such other mutually agreed way of billing – this will
give a clear picture of ones liquidity position.
These activities can be easily set up in any of small sized CA's office or work
floor and an initial 5 - 6 members to start with. However, one of the key
reason of success in the field of outsourcing is the quality of service ,dedicated
effort to service ones client on a continuos basis and most importantly the
confidentiality of client specific information. As the field of accounting and
financial services requires one to be upto date with latest amendments and
laws, a client will always welcome voluntary ideas to help them grow and be
more profitable.
Outsourcing industry predominantly runs on the confidence that one instills in
the client on handling the project. When servicing international clients there is
the Data protection act, Money laundering acts etc to be considered, but then
working internationally will also give us a scope to expand our horizons and
virtually be in a world being in a small enclosed area.

4. At the end of the day, it remains a fact that outsourcing services like any other
business area is a two way effort – the success and growth lies on the service
provider as well as the client. There should be mutually trust, confidence,
willingness and enthusiasm to work, learn, deal with situations and grow.