Mar 6, 2020 Author: Accounts Junction
Growth of Accounts outsourcing from Singapore to India
Singapore has been a hot accounts outsourcing destination for years now. Singapore is a well-developed economy, it is close to Japan and China, two of the biggest economies in Asia and also a well learned and educated the population. Singapore has a lot of accounting firms which specialize in accounts outsourcing. With access to all the major software which were used globally and a trained workforce, Singapore was bound to be an accounting outsourcing destination, especially with the trend of outsourcing burgeoning.
There’s a little trend of the tag of Singapore being an accounts outsourcing destination reversing. There are many reasons for that. India has been emerging as a hotshot accounts outsourcing destination. The reasons are as follows:
1) India’s recognition:
India has been a strong developing economy since the last few years. Also, the international heft of India has been increasing with the advent of the Indian government’s push to increase India’s heft in the world. The world views India in a different lens now. India is just not a third world country now. It is a force to be reckoned with and a rising superpower. This has increased respect for India in the eyes of the world.
2) Education and skilled labour:
India has the world’s biggest workforce in any field. The education and skills required for global standards have increased exponentially. You can find competent professionals with all the required skills and services. With accounts outsourcing, they are also equipped to handle payroll services, audit services, international taxation, consultancy, wealth management and whatever you can throw at them.
3) Cost arbitrage:
One of the biggest reasons is perhaps the cost advantage you have when you outsource to India. Singapore has become an expensive economy. The wages have risen, quality of life has risen. Maintaining a business has become difficult. Employers have to pay more than before and hence are charging more to clients than before. With Indian counterparts, similar quality of services, naturally many enterprises are shifting their outsourcing to India.
4) Concentration on core business activities:
Accounting though a major, but is not a core business activity. To maintain an in house accounting team is expensive as well as a drain on the company resources. With the hassles contracted to other entities, you can concentrate on the core business activities. The productivity of the employees’ increases and so does the performance of the company.
5) Language barrier in Singapore:
India is a major English speaking country in the world after the USA. Therefore, it makes it easy for Indian firms to take business from countries such as the USA, England and other English speaking countries. Singapore’s major language is Cantonese.
6) Availability and proficiency of all kinds of software:
Indians are adept at learning new software and can easily be trained in any new industry software.
7) Availability of different choices of firms:
India has all kinds of accounting firms which offer various services at various price points. It makes it easy to chose a firm in India.
