In his appearance on the “Big 4 Transparency Podcast” in May, our founder, Nick Sinclair, argued that offshore accounting accelerates domestic careers.
On the face of it, the idea sounds counterintuitive – the practice involves relocating work. It’s also, admittedly, a convenient framing for a company in the business of offshore accounting. However, given the persistent talent shortages plaguing major markets, Nick’s perspective calls for serious consideration.
Routine Tasks Go Offshore, Strategic Roles Stay Local
The case for career acceleration rests on shifting responsibilities. When offshore teams take on transactional accounting functions, such as data entry and routine reconciliations, in-house accounting teams have space for higher-value work. Indeed, a GoodFirms survey revealed that 55.6% of businesses now outsource operations, with 44.4% being offshore. All respondents cited wanting to increase staff productivity.
In practice, this productivity means having the capacity to do the “work only they can do,” as Nick described it. The best examples are client-facing: serving as dedicated points of contact, explaining financial positions, and providing proactive business advice—all without teetering on the brink of burnout as the profession is infamous for.
And since clients’ trust is at stake, upskilling becomes a simultaneous focus. Local accountants develop strategic thinking and presentation skills, with advanced analytics and business intelligence tools theirs to wield.
Offshore Services Create Pathways to Career-Critical Soft Skills
Apart from the technical, working alongside offshore teams requires soft skills that are highly transferable in our interconnected business world:
+ Cultural Intelligence
Understanding different work styles, communication preferences, and cultural nuances
+ Communication Effectiveness
Explaining complex financial concepts and what needs to be done across time zones and cultural differences
+ Business Acumen
Adapting and picking up on the intricacies of industry dynamics and business operations
This marrying of technical and soft skills can make the day-to-day of in-house talents more interesting, going against the pervasive image of accountants as robotic number crunchers. More importantly, these activities build the expertise baseline for senior roles or those commanding premium compensation in the market.
Evolving Roles and the Corresponding Compensation
In his Big 4 Transparency newsletter, Dominic Piscopo featured data showing shortened career progressions associated with offshore accounting. When junior-level tasks are moved offshore, firms can fast track junior-level accountants into more mature positions to handle increasing client-facing responsibilities.
In his discussion, Dominic shared that, in the US, a third-year staff position with a median base salary (at the 50th percentile) of $76,800 moves to a first-year senior level at $88,100. This $11,300 annual increase is achievable a full year earlier than traditional progression timelines would allow, assuming, of course, that accounting firms update compensations to reflect expanded responsibilities.
Job Displacement Anxieties vs. Job Upgrade
As compelling as the points I’ve listed may be, they will not in themselves dispel the fear that offshoring eliminates domestic positions, even though studies can’t measure in definite terms the causal impact of the practice on domestic employment. In recent years, the integration of artificial intelligence or the combination of both are serious considerations.
What the current body of evidence points to, however, is the birth of new demands requiring high-skill roles that can’t be easily relocated. In the case of the accounting industry, we’re talking about the growing need for local regulatory knowledge and business advisory services.
1. Be intentional with task allocation
2. Create targeted development programs
3. Map out clear career pathways
Making Offshoring Work for Both Local and Global Talent
Accelerate Your Team’s Careers with TOA Global
At TOA Global, our US-trained professionals have managed the routine accounting tasks of 1,190+ partner firms in the last decade, freeing local staff to focus on higher-value initiatives.
Ready to explore how vetted offshore team members could do the same for you? Schedule a call with our staffing experts today and we’ll create a growth plan tailored to your needs.