Regional firms have been urged to consider outsourcing in order to maintain competitiveness. In a research carried out recently by CBA, accounting firms see outsourcing of services as likely to go up over the next one year; a move that will help boost competitiveness.
The research tried to gauge the general accounting profession consensus, as regards their economic outlook as well as the kind of trends that they see as likely to affect the industry, as time moves on. The report statistics highlighted that close to 100 percent of large firms were of the view that outsourcing is likely to go up over the next 12 months. On the other hand, 57 percent mid-tier, 67 percent restructuring, and 47 percent of other firms echoed similar expectation as the large firms.
As far as the frequency of outsourcing is concerned, CBA’s research showed that 71 percent of mid-tier firms and 100 percent of large firm prefer to outsource their services overseas. Their restructuring and smaller counterparts were on the other hand inclined to just continue seeking and containing their services in Australia only.
This is however a worrying trend that is might have dire consequences on the performance of regional firms that might not be willing to outsource services fully. And as Marc Totaro (CBA’s national manager of professional services) notes, it is important that regional firms especially, consider the potential of outsourcing services in order to compete fully with large firms in order to expand their presence in the region.
He also highlighted the need for regional firms to think of how well they can adapt their business models locally, arguing that they don’t necessary have to outsource services overseas. However, Totaro noted that there might be some unknown overseas elements that could be creating a fear within firms, thereby hindering their efforts to outsource fully. The fear is largely about losing control of their already established local markets.