The High Human Cost of Low-Cost Accounting Outsourcing
The burgeoning demand for cost-effective accounting and bookkeeping services has illuminated a rather dark side of the outsourcing industry. While we revel in the cost-savings, 24/7 service, and access to global talent, have we ever stopped to consider the toll on the humans providing these services?
Raj and Ana, accountants in India and the Philippines respectively, embody the reality of many professionals in developing countries. They work tirelessly, managing the finances of international corporations, often for just above their country’s minimum wage. A global marketplace means their workdays extend into the night to align with different time zones. A never-ending cycle of work, largely underappreciated and undercompensated.
This is not about vilifying outsourcing as a business practice. It has its benefits. Instead, this is a call to reevaluate our understanding and application of outsourcing. The narrative must evolve from just ‘cost-saving’ to ‘fair compensation’.
The pandemic has underscored the role of these unsung heroes. When businesses started grappling with their finances, these overworked and underpaid professionals were expected to shoulder the load. It’s not uncommon to find an accountant in a developing country managing the books for ten to fifteen businesses simultaneously, working ungodly hours, and all for a pittance. It begs the question: at what cost do we seek cost-effectiveness?
A discussion on outsourcing isn’t complete without considering its human aspect. We must respect local wage standards and work cultures in outsourced countries. We need to acknowledge that their contribution to our bottom line goes beyond the cheap labor they provide.
The current labor crisis in the accounting industry calls for introspection. It’s time to ask ourselves: Is shifting our financial burden onto someone else’s shoulders ethical? If our cost savings translate into someone else’s misery, do we need to recalibrate our moral compass?
This dialogue is long overdue. Let’s start valuing the people behind the service, not just the cost. Let’s start paying for value over cost. Because fair compensation is not a privilege, it’s a right. It’s time we face this sad reality head-on and pledge to create a more equitable and humane accounting and bookkeeping outsourcing industry. Let’s aim for profit, but not at the expense of people. Because, in the end, a business model that thrives on exploiting its most valuable resource—its people—is not sustainable. It’s time we tipped the scales toward justice.
