Join us for our bonus March webinar with Stephen Hogg from Solutions Centric, joining David to explore the key differences between offshoring and outsourcing. They will discuss the pros and cons of each approach and why firms should consider resourcing strategies based on their size. Learn how dedicated resourcing can help manage workload more effectively and how technology plays a crucial role in successful offshoring. Don’t miss this insightful session designed to help you optimise your firm’s operations.

Presented By:
David Smith, Smithink + Stephen Hogg, Solutions Centric

Key Takeaways:

Understanding the Difference: Outsourcing vs. Offshoring

• Outsourcing involves delegating specific tasks or projects to an external provider, typically on a job-by-job basis (e.g., SMSF administration, bookkeeping, audit).
• Offshoring is the integration of offshore team members into your firm, working as part of your team but based in another country, often in India or the Philippines.

Why Firms Are Turning to Offshoring & Outsourcing

• Talent shortages: The accounting industry faces increasing challenges in recruiting and retaining skilled staff.
• Cost efficiency: Offshoring can reduce operational costs while allowing firms to reinvest in higher-value client services.
• Increased capacity: Senior accountants can delegate lower-value tasks, freeing up time for advisory and client-focused work.

Best Practices for a Successful Offshore Strategy

• Start with a clear capacity plan: Assess your firm’s resourcing needs before committing to an offshore solution.
• Embed offshore team members: Treat them as part of your firm—integrate them into team meetings, training, and internal processes.
• Leverage cloud-based technology: Cloud accounting platforms (e.g., Xero, MYOB, Class) streamline collaboration between local and offshore teams.
• Use structured workflows: Ensure consistency across all team members by defining standard operating procedures (SOPs) and workflows.
• Focus on communication: Regular check-ins, clear task management, and secure communication tools (e.g., Microsoft Teams, Slack) are essential.

Key Risks and How to Mitigate Them

• Lack of strategic planning: Avoid hiring offshore staff without a clear understanding of their role and responsibilities.
• Inconsistent onboarding & training: Provide offshore team members with structured training and ongoing support.
• Data security concerns: Choose an offshore provider with strong security protocols, including multi-factor authentication (MFA), office-based work environments, and secure data access controls.
• Staff turnover: Ensure your offshore provider has a structured staff replacement plan to maintain continuity in case of turnover.

Choosing the Right Offshore Partner

• Work with a provider that understands Australian accounting standards and has a track record of supporting Australian firms.
• Look for providers with low staff turnover, strong cybersecurity measures, and flexible engagement models that suit your firm’s needs.
• Consider visiting offshore offices or having offshore team members visit Australia to strengthen collaboration.