Accountants warned on ‘cheap deals’ with outsourcing

As outsourcing and offshoring continue to spike, some firms are finding themselves in hot water by chasing “cheap deals” as opposed to quality relationships, one firm has warned.

Speaking to AccountantsDaily, Geoffrey Fitzgerald, director at Brentnalls, reminded professionals that while there is an increase in those seeking effective outsourcing, they should avoid treating it as purely a “cost-saving measure”.

“I think if people take the view of outsourcing specifically that it’s a cost-saving measure, then I think they are looking at it the wrong way, because overwhelmingly across the board it’s about making sure that you can get as good of quality service for your clients as possible,” he said.

Mr Fitzgerald noted that the increase in outsourcing services, particularly in Sydney, is a result of a tough employment market.

“It’s hard to find employees and it’s even harder to keep them. So if you’re able to obtain an outsourced solution of quality, that provides good service, then I don’t see how that’s any different from obtaining a good employee,” he said.

Further, Mr Fitzgerald believes there is room for some regulation about the disclosure of data when it comes to outsourcing arrangements.

“There is a lot of outsourcing that take place within a business, so what part of that needs to be disclosed and what doesn’t? So if there is more regulation needed for disclosure then it needs to be broader and not just limited to employment,” he said.

“But the reality is that I don’t think there needs to be that much regulation. There may be some oversight but if you get inferior services and you’re driven by price, then generally that will flow through in the quality of your work and the output to the client.”

 

 

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