Accounting... and Outsourcing?

For Writing Project #2, I am thinking about writing about the onset of technology in the field of accounting. Similar to the computer programmers who we have discussed in class, many lower-skilled accounting roles are being outsourced to places like Bangalore, India. Even a decade ago, the outsourcing of accounting would have seemed unthinkable, but today the practice is growing at breakneck speed.

Staying true to the trends in outsourcing, the accounting work being sent abroad is fairly menial work that consists of simple forms and calculations. Rather than spend the extra money on a trained accountant in the United States, a company can benefit from flawlessly completed work at only a fraction of the price. The only necessity for a foreign business to enter into this growing industry is an understanding of American accounting practices, as well as access to a pool of talented college graduates. As is the pattern in other industries, such a talent pool is readily available in developing countries like China and India.

Another facet of this outsourcing is the timeliness with which Indian and Chinese workers can deliver the work. Because of the time difference, a work contract may be signed late in the work day in America, which is at the beginning of the day in India. Then, as their American counterparts sleep, the Indian accountants are able to diligently finish their contracted work and have it ready at the beginning of the work day in the United States. This symbiotic relationship is extremely beneficial to both sides, and is yet another unforeseen gain yielded from the onset of the technology revolution.

Although this practice is growing in popularity and will no doubt eventually achieve widespread use, there will always be a demand for skilled American accountants as well. Just as Silicon Valley firms must higher senior managers in the United States to maintain business relationships and cultivate new clients, so too must American accounting firms uphold a domestic presence in terms of workers. This fact holds true because in the field of accounting, some work requires an intimate understanding of both the company’s financial status and the state of U.S. tax law at the time. So as a matter of fact, outsourcing will never completely pervade the accounting industry as it exists today.

Overall, this is a striking trend that I must be aware of in the coming years. Because of this trend, I face continually shrinking career opportunities, as well as a changing reality of work as an accountant. If I am to succeed as I graduate college and move into the job market, I must realize and adapt to the changes taking place in the industry.