Global spend on accountancy outsourcing has grown by 41% in the space of just five years, according to data from consumer survey firm Statista.
And figures from accountancy outsourcing specialist AdvanceTrack show that enquiries for its services have more than doubled in the past 12 months.
According to Accountancy Age, the ongoing talent shortage has prompted a shift in perspective. It said: “With a dwindling pipeline of accounting graduates and escalating labour costs, outsourcing has emerged as a viable solution to access specialized expertise and maintain a competitive edge. Firms are recognising that a blended workforce, comprising both in-house and outsourced talent, can enhance operational efficiency and drive growth.”
Vipul Sheth, Managing Director of AdvanceTrack, said: “The surge in popularity is because people are looking for high levels of service at a cost-effective price point. Add to this the lack of a strong pipeline of talent coming through, and it’s understandable to see outsourcing swiftly gaining momentum.”
AdvanceTrack has achieved 60% year-on-year growth, and Sheth predicts that by 2034 more than 50% of companies will outsource some or all of their accounting tasks.
He said research by AdvanceTrack found a 19% increase in Google searches for ‘accountancy outsourcing’ in 2023.
Sheth said: “It’s no surprise to see interest in accountancy outsourcing increasing. We know first-hand it’s a booming sector. The enormous rise in global spend, coupled with our year-on-year growth and increase in enquiries, indicates a potential shift in the future of our industry.”
A report published in 2023 by Clutch, global marketplace of B2B service providers, found that 37% of small businesses already outsource accounting or IT services. Nearly a quarter of these businesses cite boosting efficiency as the primary reason for outsourcing, followed by increasing available expertise (18%), flexibility (16%), and allowing employees to focus on other tasks (15%).
“The surge in popularity is because people are looking for high levels of service at a cost-effective price point. Add to this the lack of a strong pipeline of talent coming through, and it’s understandable to see outsourcing swiftly gaining momentum.”
Vipul Sheth, Managing Director, AdvanceTrack
