India Vs Philippines Which is the Best Offshoring Destination for Accounting Firm
Though the practice of offshoring in accounting has been around for decades, its recent acclaim can be owed to the pandemic. When the world shifted online, offshoring staffing, especially in the accounting industry gained impetus. The growing popularity has resulted in newfound interests by multiple small and large firms to explore offshore staffing and internalise them in their firms processes. The fundamental questions that may arise in the minds of newcomers would firstly be the quality of talent and their ability to work in cohesion to the norms and conducts of the source nation. Another imperative question that pops up is how can one choose the right destination for offshore staffing and outsourced accounting.
In the accounting realm, the top choices that one comes across for offshoring are India and the Philippines. The offshoring/outsourcing industry in these developing nations has been adeptly trained to cater to the financial services of all types of the source nations. But how do you make a choice between these two nations? Here’s a comparison to help you decide!
1. Ecosystem
India is home to the renowned ‘big fours’ who have multiple offices in most major cities of India. These offices are dedicated service centres which are designed to cater to the requirements of US and Canada-based clients. Additionally, offices specifically catering to the Indian market are also present which showcases the potentiality of the Indian workforce and the financial markets.
Big 4 & Consulting Firm’s Hiring
EY, PwC, Deloitte and KPMG hiring more fresh graduates amid a surge in business
Deloitte to double India workforce in 2–3 years: Punit Renjen
Deloitte plans to hire 40,000 in Hyderabad
Deloitte hiring Chartered Accountants
EY to hire 14,000 employees in India; Deloitte, KPMG recruiting too
Ernst and Young leases 115,000 sq ft office space in Noida
Cognizant to hire 50,000 freshers in CY22; highest ever for the company
“Most tech giants functioning in the USA have their largest offices in India. Their confidence in the Indian workforce and economy is contagious and is spreading to other industries as well. This also has a massive effect on offshoring practices as it instils conviction in the talent”. Stated by Shawn Parikh, CEO, Entigrity.
The topmost finance and accounting firms with offices all over the world are expanding their presence in India by recruiting more. Entigrity works with 30 of the world’s top 100 accounting firms by helping to build up their offshore teams.
2. Talent Availability and Development
When anyone thinks about offshoring, their main concern is creating a linkage between the organisational practices and the man power. A united approach is important not only in serving clientele but also to maintain calm and structure within the firm. It is pertinent to note that Indian universities produce close to four million graduates each year who are proficiently trained in the commerce industry. As a result, foreign firms can choose from a large talent pool when hiring staff for their outsourcing operations. Since it is predicted that the number of individuals in the working-age population will only keep rising, it is unlikely that this talent pool will get smaller in the upcoming years. US companies want CPAs, CMAs and EAs who have an ingrained understanding of the US financial operations and procedures.
There has been a steep rise in the number of Indian students opting for CPA and other similar accreditations in the recent years which has attracted innumerable coaching and training institutes to lay ground in India. At Entigrity, the hired staff is ably trained to not only understand the procedural aspects of the industry but also the nitty-gritties like courteous communication skills which make the clients feel more comfortable. India also boasts of being the second-largest English-speaking country in the world right after the USA. Therefore, the workforce is well-versed with the language and can adapt to different accents of the same. Even though the English language has found its way into the Filipino culture, there is a stark variance in the extent of English-speaking population when compared to India.
3. Time zone
When it comes to offshore staffing, a co-ordinated effort is one of the many requirements for smooth-sailing operations. For this, a relatively well-adjusted and closer time zone is of pertinence. Shifts in India usually end between 12–1AM (India Standard Time). On the other hand, in the Philippines, shifts usually end between 3:30–4 AM (Philippine Standard Time) which falls in the parameter of the infamous graveyard shift. The effectiveness and coordination with US and Canadian clients are put under strain as a result of this. Offshore teams from the Philippines work great with Australian clients as they share the same time zone.
There are many excellent English speakers, reasonably priced employees, and highly skilled developers in both India and the Philippines. However, One cannot unsee the clear advantage that India has not only in terms of decades long experience but also in the quality and quantity of the talent pool available. Moreover, the investments of big players of the finance and accounting industry in terms of training and development also has a tremendous impact on the offshore staffing.
Efforts like these undeniably make India the topmost choice even in comparison to an able opponent like the Philippines. Companies like Entigrity have mastered how to provide optimum quality services all the while developing and maintaining a smooth and streamlines organizational ecosystem. That is exactly why we are the #1 offshore staffing company in the country. We are well-equipped to fulfil the demands of accounting firms, irrespective of their sizes and can help you get the right staff, at the right time, for the right price.
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