In part 1 of this series we discussed the staffing shortage that has been leading to blank spaces in your org chart—as well as the blanks in knowledge about global staffing, which leads to that uncomfortable feeling of uncertainty. Now that we have a little knowledge that there are options out there means you might have to do something about it. And that blank expression in the mirror isn't just confusion but maybe some anxiety too.
Here There be Monsters
For centuries cartographers drew maps only of their local areas. Beyond those known realms, maps contained gruesome figures famously captioned “here there be monsters.” This indicated that no one knew what was there and no one should venture beyond to find out. It wasn't until 1507 when Amerigo Vespucci drew a world map including the soon to be eponymous American continent that the world saw blank spaces at the edges of the world. No monsters or warnings. Just places to be explored and filled in.
So, let's fill in the rest of the outsourcing world and dispel some myths with facts.
Myth: Clients will leave if I use “foreign” talent
Fact: I've never lost a client because of outsourcing. I have lost them because I was too expensive or didn't have the capacity to address the client fast enough. But based on discussions with dozens of practitioners who use global talent, none have had anything but immaterial push back on using global staffing. Clients are smarter than we sometimes give them credit for being. If a client is sophisticated enough to need a CPA, they probably understand the fact that you may need international talent to support them. Not only that, how often are they already supported by international teams (IT MSA's and web design come to mind), or the client businesses and lives already have international connections?
Myth: Communication is hard with time zone differences
Fact: Communication is certainly not impossible, but it is true that there are special challenges. Time zone differences require careful planning. I recommend rescheduling periodic (at least weekly) meetings to connect. Agree on what tools, platforms and workflows process you are going to use. Will you trade emails or Teams messages? Do all notes go in individual client files? These processes reduce the need for real time communication. Depending on the location of the team, there may not even be time zone differences. “Near shoring,” including to Mexico, Canada and South America reduce these issues.
Myth: The language barrier is awful
Fact: There's a small amount of truth here, but it's pretty much false. Written and spoken English skills among the educated workforce you'd be needing is high. Professionals in other countries looking to be outsourced solutions absolutely speak English. Flexibility will make things run smoother, though.
I've noticed two components to this:
First, differences in grammar, syntax and terminology. In Indian vernacular “raise an invoice” doesn't mean increase fees, it means create the invoice. These differences are usually no big deal and just require a bit of patience to mutually bridge the gap (unlike I did the first time I heard this!) It’s the equivalent to a New Englander calling a carbonated beverage “pop” while we Californians call it “soda.”
Second, the accent. This one is real but think about how often you already encounter this every day. Do you really mind? The way I've handled an accent depends on who I'm dealing with. Mostly I try to speak and write extra clearly (not more loudly). I also tend to emphasize written communication as much or more than verbal communication, which mitigates the accent issue (though possibly not the first issue). Additionally, for my own firm, I have an accent coach working with our lead people at our Indian subsidiary.
Myth: Info security is bad, and your client's info is at risk in another country
Fact: Your client/s info is already at risk. It's possibly more at risk in your current security environment than it would be at an outsource firm that is grilled about their data security constantly. To ensure they are up to snuff you can ask for their written data security policy, DRP or AI usage policy if they have one. Frankly most of us don't ask about this enough of our vendors or even ourselves! And this is relevant whether the vendor is in another city, state or country.
Myth: Foreigners couldn't possibly have the skills or judgement to do work on U.S. clients
Fact: This one is purely false. Primarily because of the Big 4 firms, many countries have a long history of outsourcing professional services to the U.S. India is considered the outsource capital of the world for good reason. The Philippines, Mexico and Columbia aren't far behind. There are whole generations of professionals that know primarily U.S. GAAP and the IRC rules and guidance. And because they have been trained in not just U.S. methods but in U.S. business culture, the skill set, experience and judgement most often are aligned with what you'd expect out of U.S. trained staff.
The facts and fictions surrounding outsourcing are less intimidating when laid bare. No monsters here, just the blanks in your organization chart to fill. Understanding the facts and real challenges enables you to expand into previously uncharted territory and bring the strength of the world to your team.
Ben Towne, CPA/ABV/CFF is owner of Towne Advisory and Assurent Advisors.