OK, here at Southwestern Talent you’ve heard us talk a lot about “offshoring.” You’ve probably been wondering, “What’s the big deal? Is this a fancy new trend like AI?”
Well, AI is more than just a trend, but that’s a different article. Today we’re here to answer all your questions and talk about offshoring: what it is, what are the concerns, what are the benefits, and is it something you should actually be considering for your organization?
Let’s break it all down.
First, what is offshoring, precisely? Offshoring is when a company shifts certain tasks, services, or even entire business processes to a team located in another country. The goal is usually to reduce costs, tap into a wider talent pool, or gain other economic advantages. It began increasing in popularity for IT and customer service-centered functions in the last decade, and has slowly been increasing in popularity in other areas like payment processing, data entry, human resources, healthcare, and manufacturing support.
It’s important to know that offshoring doesn’t simply mean “outsourcing.” Outsourcing simply means handing work to an outside provider (who could be down the street, for example). Offshoring specifically refers to sending that work overseas, whether to your own subsidiary office overseas or to specialized remote employees.
The global pandemic of 2020 catapulted the popularity, convenience and effectiveness of remote work for everyone, not just overseas employees. Through the magic of technology, teams could now work from anywhere safely, securely, and effectively. So, here we are, several years later where the workforce is primed and ready to be able to take advantage of offshoring like never before, without significant changes to processes or existing tech stacks.
Talk to any firm today and you’ll probably hear the same thing: “We can’t find enough good people.” Between the accounting talent shortage, higher salary demands, and changing work-life expectations from younger generations, firms are finding the U.S. talent pool slowly shrinking. Slowly…but there has been a definite and consistent downward trend over the last 2-3 years like a tide slowly creeping out. There are many reasons for this (again, different article), but those in charge of financial hiring have noticed, and are wondering if things are going to recover. If this is the new normal and more experienced U.S. accountants are set to retire, firms are quietly looking at backup plans.
Now, not all countries have accounting shortfalls – here’s where it gets interesting. Certain English-speaking countries like South Africa actually have accounting surpluses. We’ll get to that in a minute. But the global offshoring industry in itself is estimated to be worth $85 billion annually, and more than 60% of Fortune 500 companies have offshored at least one business functions. Furthermore, businesses generally report cost savings from offshoring of 30–60% compared to domestic operations.
According to AICPA’s 2023 National MAP Survey, which surveyed more than 1,100 participants, 25% already outsource to offshore teams and 12% are planning to start offshoring soon.
That’s why “offshore staffing” has become such a hot topic. And it’s not just the big players experimenting – firms of all sizes are getting curious.
Of course, mention offshore staffing and you’ll quickly hear objections: “Won’t quality suffer?” “What about data security?” “Will my team feel threatened?”
All fair questions, but also ones with good answers.
Let’s tackle the big ones.
One big worry with moving any work outside the U.S. is that collaboration will break down. Skeptics fear language barriers, time-zone challenges, or coordination nightmares. The truth is, many offshore accountants speak fluent English and are accustomed to working with U.S. firms. Firms that utilize offshoring successfully have overlapping work hours, regular check-ins, and clear documentation to facilitate clear and simple collaboration.
Another frequent objection: the quality won’t be as good, overseas accountants won’t understand local rules, or will make errors. The key is enforcing robust quality controls. Just like any new accountant would need to be ramped up, you need clear standards, onboarding protocols, checklists, and possibly paired work (ex., domestic and offshore staff collaboration until confidence is built). Many firms also require offshore staff to pass credential tests or training before handling critical tasks. The good news here is that many international credentials translate well to U.S. standards.
For example, SAICA (South African Institute of Chartered Accountants), functions similarly to AICPA (American Institute of CPAs) in the U.S. Members of SAICA earn the CA(SA) designation, which is one of the most highly regarded accounting qualifications globally. To become a CA(SA), candidates must complete a university degree, pass rigorous qualifying exams, and complete a multi-year training contract (similar to a CPA firm internship/apprenticeship).
Both CA(SA) and CPA are prestigious, highly technical designations. The CA(SA) training path is more apprenticeship-based (hands-on from early on), while the U.S. CPA route is exam-heavy with flexible pathways. Many global companies recognize CA(SA) as equivalent to CPA when evaluating credentials.
That’s just one example, but there are many more similar ones.
One common concern is data protection, confidentiality, and regulatory compliance. After all, accounting involves financial statements, client tax data, and personally identifiable information – responsible handling is nonnegotiable. Many offshore providers comply with global security standards (e.g. SOC), and to further mitigate risk, firms are using encrypted file transfer, VPNs, restricted access, role-based permissions, and data-sharing policies.
Most firms usually have strict data handling policies and IT tools in place already, so extending them to vetted offshore partners isn’t an insurmountable challenge.
Finally some worry about the culture, that offshore staff won’t fit in with other full-time hires. This depends entirely on where you are sourcing your offshore help from – certain providers like South Africa are much more compatible with English cultural norms than say, certain Asian counterparts. Certain countries are also more amenable to time-zone differences. South Africa for example, is six hours ahead of the U.S., making it an ideal partner for Eastern and Central time zones, while other traditional hubs like the India or the Philippines have larger, 12-hour gaps.
With an open-mind and clear on-boarding and expectations, many companies who test offshoring with strategic pilot programs find that this concern isn’t nearly the obstacle that they thought it would be.
Some in-house staff worry: “If we hire overseas, are we next?” In a word, no. Offshoring does not mean the in-house team is going anywhere. If anything it will make their life easier with additional support for certain functions and during peak seasons that have everyone run off their feet. A well-implemented offshore strategy actually lets your local team move up the value ladder – focusing more on client advisory, strategy, and relationship building – while offshore handles high-volume or repetitive tasks. That’s a win-win for everyone!
As mentioned earlier, offshore staffing isn’t new. The pioneers have been doing it for years.
So, is offshore staffing worth the hype? Absolutely. More talent, lower costs, faster turnaround, and space for your local team to breathe. If you’re curious but cautious, start small. Run a pilot or give offshore teams a slice of work – bookkeeping, reconciliations, or payroll – and see how it helps. At Southwestern Talent, we can help you decide where to start if you’re on the fence.
Contact us for a free consultation and in less than an hour we’ll be able to tell you if we can help and whether this makes sense for your organization.