Any experience with outsourcing?

Discussion in 'Accounting' started by Carol, Jan 19, 2006.

  1. "The US of A is about to become a third world country"
    Overheard by an Indian at the landing of the Pilgrims
    Paul Thomas, CPA, Jan 20, 2006
    1. Advertisements

  2. Carol Guest

    I musta read over a year ago the reason for
    isn't cost but that USA students would rather study finance these days..
    and with a lot of new regs, the chap in India, is, well, more objective..

    With XML and natural language processing, a lot of the
    outsourceable work might end up being done by machine anyway.. Some
    computerised call centers are now so good most folks don't know
    they're not human..

    And fundamentally, the developed world is headed for a major labor
    shortage (post-boomer-retirement) that could lead to a repeat of the
    Great Depression ( we need all the help we can get..

    - = -
    Vasos-Peter John Panagiotopoulos II, Columbia'81+, Bio$trategist
    BachMozart ReaganQuayle EvrytanoKastorian
    ---{Nothing herein constitutes advice. Everything fully disclaimed.}---
    [Guilty conscience produces extremism] [Urban sprawl confounds terror]
    [Homeland Security means private firearms not lazy obstructive guards]
, Jan 20, 2006
    1. Advertisements

  3. By the last numbers I'd seen, wage inflation in India is around 14%,
    they're predicted to be the world's fourth largest economy by the year
    2050, and they're already outsourcing some of their own work to China.
    So what will be the cost advantage of sending work to India in the next
    Gregory L. Hansen, Jan 21, 2006
  4. Carol

    Ron Todd Guest

    On Sat, 21 Jan 2006 00:19:24 +0000 (UTC),
    I would think that those who could for tell the future wouldn't have
    to work for a living. :)
    Ron Todd, Jan 21, 2006
  5. Carol

    Ron Todd Guest

    1. Things tend to go in cycles.

    2. Until the cycle is finished you never now where you are in a cycle.

    3. Because of the managerial control problems on both ends I could
    never recommend outsourcing to anyone.

    4. If you take the time to analyze what outsourcing really is, it can
    only lead to the conclusion that it is mechanism of enterprise

    5. It is a pretty safe that people who are trying to sell you
    something do not have your best interests uppermost in their thoughts.
    Ron Todd, Jan 21, 2006
  6. Carol

    Ron Todd Guest

    Well...... The Indians (NA) did outsource their farming skills, food
    gathering, game hunting skills, and other competencies to the
    Pilgrims. I don't thing the analogy is too much of a stretch to
    compare to USA outsourcing, off shoring, and our pernicious
    interpretation of what "Free Trade" is (it is the most one sided
    practice I have ever heard described as free outside of Pravda).
    Ron Todd, Jan 21, 2006
  7. Carol

    Ron Todd Guest


    I have not seen the characteristics of an actual labor shortage. I
    have seen the concept used as a sales tool to drive down the cost of
    labor and as a self serving excuse for management failures.
    You won't get or find that cause and effect anywhere in history. The
    Great Depression was triggered by American tariff practices and
    spurred on by reckless speculation in the capital markets. The only
    reason it lasted so long was the sheer incompetence of the Frank
    Roosevelt and administration of idiots.

    Accounting and Audit were very bad in those days and people were not
    getting a clear picture of what the Federal Government was actually
    doing. Today we have much more transparency, although we still have
    the idiots.
    Ron Todd, Jan 21, 2006
  8. Carol

    Joe Canuck Guest

    I've been telling the future since 2001. :-D
    Joe Canuck, Jan 21, 2006
  9. My business *is* outsourcing. For companies that need to add to their staff
    without committing to hiring a new employee. We offer IT, data/telecom, PC
    support/repair, printer repairs, bookkeeping, accounting & training

    There's more to outsourcing than canning your employees and hiring a
    contractor for 1/2 the money, or farming out your support centre to India,
    which is the typical view of what outsourcing is.

    Stephanie Wells, AICIA
    Durham Business Outsource
    Partner, Accounting & Technology
    Stephanie Serba, Jan 23, 2006
  10. Not necessarily. Are your bookkeepers on your payroll? Perhaps it might be
    better for them, and you, if you were to offer them contract positions
    instead. Offer your clients the opportunity to save themselves a bit of
    money by hiring the bookkeepers on contract directly. Yes you may lose some
    of the money you billed out from marking up their hours, but you may attract
    more clients by putting them onto someone they can hire, on contract,
    directly to the client. Providing of course they want to retain your
    services for auditing & tax preparation.

    Outsourcing is not necessarily a bad thing.

    BTW, *if* you were to put your current people on contract, they may have to
    be cautious about this move. In Ontario, if a person is on "contract" but
    has only one customer they bill, they are still considered an "employee" and
    the "employer" is still responsible for retaining and remitting payroll
    taxes even though they are technically not an employee. There are
    qualifications regarding employee-employer relationships that come into play
    if you do not have more than one client....

    Stephanie Wells, AICIA
    Durham Business Outsource
    Partner, Accounting & Technology
    Stephanie Serba, Jan 23, 2006
  11. Are you inquiring about outsourcing the work out of your immediate area? I
    wouldn't recommend it.

    Stephanie Serba, Jan 23, 2006
  12. Carol

    Carol Guest

    Thank you for your comments, Stephanie. I didn't respond before because
    I was away from the office.
    I hadn't been considering proposing passing my bookkeepers on my
    clients. But I will. For me is keeping the Core: My Clients. Everything
    else is seondary.
    Carol, Jan 23, 2006
  13. Carol

    Joe Canuck Guest

    Typically the contractors cost twice as much, where the outsourcing
    company costs half as much or less... as compared to employees.

    Those employees affected by outsourcing all have the same view... they
    lost their jobs due to it.
    Joe Canuck, Jan 23, 2006
  14. Carol

    Joe Canuck Guest

    ....and there is nothing to stop the clients and bookkeepers from
    removing the middleman and doing business with each other directly.
    Joe Canuck, Jan 23, 2006
  15. Unless this was a part of the "service" I offered as a bookkeeping service
    or accountant (ie telling my client they can book and pay the bookkeeper
    directly), I'd have those working on my clients files sign 1) a
    confidentiality agreement and 2) a non competition agreement. As long as
    they are working for me, and for a period of 1 year after they either
    employed by me or performed contract work for me, they would not be able to
    either take one of my clients with them, solicit one of my bookkeeping
    clients or accept an offer of direct employment/contract work from the
    client directly without my express consent.
    Stephanie Serba, Jan 24, 2006
  16. Not necessarily. You pay the contractor for the actual time they work, and
    not for warming a desk chair. You also don't pay a contractor for breaks,
    lunch, vacation pay, stat holiday pay, employer expenses like Workers Comp,
    unemployment, pension, group health and dental plans, training and any other

    And often, the contractors wages are less per hour than the salaried
    employee *because* they get benefits and vacation.
    Depends on *why* and *how* the employer is outsourcing. If they are
    *eliminating* the positions yes, unless they offer contracts to the people
    *in* the positions they are eliminating. If they need to augment or add to
    their current staff, or divide responsibilities for security, then no.
    Stephanie Serba, Jan 24, 2006
  17. Carol

    Joe Canuck Guest

    Which is why contractors usually charge double the rate of an employee.
    Joe Canuck, Jan 24, 2006
  18. Unfortunately, without my designation in hand, I am actually *underpaid* for
    the type of work I do. In an employer/employee situation I make $21.50 per
    hour, but if I were a registered CGA student I'd have the equivalent of a
    3rd level student and I'd be getting something like $40 or $45 per hour. I
    only charge $30 to $35 per hour for contract work. I do charge $65 per hour
    for training and software/computer related work (troubleshooting, software
    installation/upgrades, hardware installation/upgrades, repairs, technical

    Most contractors I've met charge less per hour than salaried employees get.
    They're just able to charge more hours.
    Stephanie Serba, Jan 24, 2006
  19. Carol

    Joe Canuck Guest

    When I was an IT person and did contract work, I typically charged
    $500/day and up depending on the work
    Joe Canuck, Jan 24, 2006
  20. Carol

    Accounting Marin

    Oct 13, 2011
    Likes Received:
    Which country would you prefer if you do outsource? Top 2 are Philippines and India.. I think Singapore is closely catching up.
    Accounting Marin, Oct 14, 2011
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.