The world’s major accounting firms are investing in new Indian facilities away from bigger cities as global demand for cheaper back office operations grows and smaller towns move up the economic value chain. Traditionally, large multinational corporations have rushed to India’s biggest metropolises, chiefly Mumbai, Delhi, and Bengaluru, to set up massive operational centers that employ millions, lured by vast, low-cost talent pools, particularly in IT.
However, escalating wages, a lack of skilled accounting graduates in developed nations, and visa restrictions have shifted the pendulum toward India’s smaller cities. This is expected to boost India’s service exports by a quarter this year and create 2.6 million jobs in tier-2 cities like Jaipur, Vadodara, Kochi, and Chandigarh. It will also boost local economies as companies open offices, drive office rents, and compel educational institutions to offer more courses in international accounting.
PricewaterhouseCoopers has a presence in more than 150 countries and 650 offices. They are known for their external audits, taxation services, management, and business consultancy. They are also famous for their organizational training and helping employees pay for additional certifications and credentials.
KPMG is number four, with over 160 countries and nearly 700 offices. They are a leader in the global market for corporate finance, transaction advisory, and risk management. Their clients range from SMEs to some of the largest corporations in the world.
At one point, it made perfect sense for a firm, let’s say, an insurance company, to maintain massive back-office departments. Having many people on hand to handle data entry and forms processing, commissions and claims management, policy management, and other back-office tasks ensured all the work was completed quickly and accurately.
But as technology advanced, many back-office processes became less and less labor intensive. And as the economic landscape changed, companies increasingly needed to cut costs while maintaining high-quality standards. That’s when outsourcing began to become a popular option.
Outsourcing can reduce costs by allowing businesses to focus on core competencies, such as sales and marketing. It can also improve productivity by freeing up resources that can be used for more lucrative activities, such as product development. There are a few things to remember when choosing an outsourcing partner, such as cultural fit, language skills, and project management capabilities. A good outsourcing partner should be able to provide regular updates on the status of projects and communicate effectively with you and your team.