Outsourcing your own job

[MikeL]

http://video.yahoo.c...913052/13085644

 

In tough economic times, it's good to see that some Youtube posts that can poke fun at our misfortunes. The above tongue-in-check news reporting is good for a laugh. Unfortunately, it is true.

 

I know of several high volume, personal tax return preparers, including respected CPA firms, who outsource tax return preparation to accountants in India. The Indians are very knowledgeable on US tax law and produce excellent work. A US CPA can scan a client's documents, e-mail them to India, and receive a completed return the next morning. There's no midnight oil for the US accountant, great earnings for his Asian "back office", and fast service for the client. It's a win-win-win for all involved and, as long as there is a shortage of qualified accountants in the US, no one is hurt.

Edited September 2, 2009 by MikeL

[Mark Arbour]

I'm studying a proposal for a corporation to outsource some of it's back office functions to India. What intrigued me was that it wasn't really the direct cost savings that were most attractive (not that they aren't), but it was the flexibility. A company can expand or contract and the outsourcing firm in India will add or transfer the people needed to do the job. No under-utilized employees in a downturn, no overworked ones in an expansion.

 

Outsourcing like this definitely takes a toll on the US, but as you note Mike, it is largely symbiotic. In the past, the US relied on direct foreign aid to assist (or bribe) other countries into our sphere of influence. Now, we can outsource instead. Instead of the money going into some dictator's pocket, the money creates jobs, and a stronger middle class in countries like India and Brazil.

[MikeL]

In the past, the US relied on direct foreign aid to assist (or bribe) other countries into our sphere of influence. Now, we can outsource instead. Instead of the money going into some dictator's pocket, the money creates jobs, and a stronger middle class in countries like India and Brazil.

Free trade really works well in this situation. Company-to-company relationships are stronger than country-to-country because the politicians, with all their baggage and restrictions, are bypassed. A mutually beneficial arrangement is negotiated rather than one-upsmanship in the negotiations being the end game.

[old bob]

Me make here in Switzerland same experiences about outsourcing different services to indian or irish firms :

accounting, tax follow ups, tel-, fax- and other call-centers, medicare services. On one side lower costs, on this other less adequate and less individual services. Our main problem : the language. Our business language here is French, and most of the outsource companies are english speaking.Among my friends and former clients, a lot stayed to outsourcing but went to work with local firms, with better and individualised services.

BTW, at my age, I dont want to worry about my business. What I dont like to do, or what is too big for me, I too "outsource" it, working with "subcontractors". I made it since years, so maybe I'm one of the first outsourcers .

[Daisy]

yeah, my dad once looked into it. I can't remember what for now, maybe just office admin stuff - he had solicitors firms. but it didn't happen in the end. though of course here in the UK using indian and such call centres for business has had a lot of flack. with some business now using as a soundbite that they purposely use english centres because people were getting fed up with not speaking to people, one of the sameish accent, but more people that couldn't really understand what you were saying / difficult to communicate with. I try and be patient, but it can be exaspereating at times, especially if you are in a hurry. check out slumgdog millionaire. I presume you have the same anyway.

[KJames]

Then again, outsourcing has its drawbacks...wasn't it H&R Block that got into trouble for outsourcing their IRS Tax Preparation Service to a call center in India? All that data is supposed to stay strictly within the USA...needless to say, customers, the IRS, and then other government agencies and the NYSE got wind of it and they had all kinds of he77 to pay...