The Offshoring Of Accounting And Finance: Where Its Been And Where Its Going

Abstract

This article surveys the past and future of FAO finance and accounting outsourcing. It tries to identify why the offshoring of finance and accounting work has lagged three or four years behind most other business functions, in spite of its seemingly significant cost advantages. It then outlines some of the major emerging trends in the field, including its extension to mid-size firms, the proliferation of venture-capital financed offshore start-ups, the creation of dedicated environments to address security concerns, its expansion beyond India, the non cost-related advantages of offshoring, and the attempt to put an American face on the entire process.