Outsourcing overseas – A short-sighted tactic?

In a recent blog post I discussed my, and the CapitalQ Team’s, concerns regarding the outsourcing of local accounting and business advisory work overseas by so many of Australia’s Accountants.

And how we have announced that our long held internal stance against the practice is now codified via our upgrading of our “Industry First” 6-point (now) 7-point Taxation and Advice Peace of Mind 100% Satisfaction Guarantee to include our commitment to never outsource overseas any of the work our local Australian small business owners entrust us to perform.

This time around I wanted to discuss another of my big concerns around the idea of outsourcing overseas.

Outsourcing Overseas – A Short-sighted Tactic?

And that is that in my view, it is a short-sighted strategy.  In fact it isn’t a strategy, it is a short-sighted tactic, which I fear means those employing it are not considering the bigger picture, nor approaching their business, nor likely those of their Clients, in a strategic manner that provides the opportunity for real, long term, success.

And therefore, it is thinking that goes against the way I aim to approach my businesses, the businesses of the CapitalQ Community, and life in general.

The primary evidence of this is the recurring feedback I hear from accounting firm owners that they can’t find good staff, and in particular, that they can’t find neither experienced intermediate, nor senior, accountants who are capable of performing high quality work, without supervision, while managing their Clients’ affairs, maintaining Client relationships and, most importantly, helping their Clients grow and achieve business, financial and lifestyle success.

And my response… well of course they can’t!  And perhaps they don’t deserve to!

Invest in Local People, Invest in the Local Economy

Because they themselves are not investing in Australian based individuals and training them to become the quality Accountants and Business Advisers we, and Australia’s business owners, need!  Instead they have chased short term profit gains, without consideration of the bigger picture for the local industry, their small business Clients and the country at large.

Within our current Team, all three of our senior Client Managers started with CapitalQ with zero, or less than one year, experience within a public accounting practice.

Of our five other accountants, only one, our most recent recruit, did not join us as a Graduate Accountant with no practical experience in another public accounting practice.

We have always resisted the purported short term gains of engaging overseas outsourcing providers and instead we have taken on the responsibility, and the risk, and the obligation of giving Australian based individuals a chance to learn and to grow and to shine.

And now we are being rewarded through outstanding work and loyalty.  Plus most importantly our Clients are seeing the benefits in the form of high quality advice and outstanding service from locals who have ever improving technical knowledge and skills and who are committed both to CapitalQ and to our CapitalQ Community Members.

Oh, and of course the broader community and economy is also benefiting.  These dedicated Australians (or future Australians in some cases) reinvest their earnings back into the local economy including shopping local, buying Australian homes (in some cases buying homes in Perth in preference to returning to the countries of their birth), buying cars from local dealers, paying for local education for their children and investing in Australian businesses and property.  And the result, all Australians are benefiting.

What about Globalisation?

So what about the benefits to other countries from the outsourced work?  There is no denying, by sending Australian work and money to overseas locations, the people of those countries benefit.  And that is truly great for them.  And we have absolutely nothing against them and our stance is not about denying them the prosperity they seek and deserve.

Our position is simply about making sure our backyard is taken care of first, especially in this current economic environment.  What do they say…

“Don’t set yourself on fire, to keep someone else warm!”

So we will do our international civic duty whenever we can, in our own modest ways, but priority one is West Australians and West Australian businesses.