In the last 12 months there were approximately 25,000 Australian office jobs sent to the Philippines alone. According to experts this number is set to double this year. It can be a touchy subject with some people but it’s not going to go away. Clothing has been manufactured overseas for years and now its office jobs. When the labour costs are 1/5th to a 10th of what we pay locally it is a compelling opportunity for businesses to consider. There is also an abundance of people who are educated and very keen to work.
Although many Asian countries are offering outsourcing resources I am most familiar with the Philippines market. There are approximately 1.2M people currently hired and it is growing at 20% pa. They cannot build the office facilities fast enough to house them all. To become a qualified CPA it takes 5 years after university and you can hire them for around $4 – $7 per hour. This is considered a good salary.
When I first visited on an outsourcing study tour the following line got me: “any job that is done over the phone or behind a computer we can do for a 1/5th to a 10th of the cost”. So basically any non-customer facing role can be done cheaper and often better.
The use of cloud technology is critical to making this happen in Accounting firms. Instead of sending large data files backwards and forwards the off shore Accountants are working on the same file you are. If Accountants locally are not adding value to the work they are doing then their days are numbered.
The Accounting firm of the future will have local team members who are customer facing and adding value. Everything else will be done somewhere else. This is happening right now.
At my upcoming “Capitalising on the Cloud” 1 day seminar I am interviewing an Accountant who has hired 38 people in the past 3 months to work for his Australian clients. He has 28 people on the Gold Coast and now 38 in the Philippines. It’s a fascinating story. I am going to step you through all of the options on how you can capitalise on this opportunity. The seminar tour has 11 cities to visit from March 24 – April 16. For more information and registration details go to www.cloudseminar.com.au.