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14 May 2013 | Andy Allen
More than 70 per cent of financial directors at small businesses have said they would not offshore their accounting services, as part of a recent survey.
The majority of the 103 FDs surveyed said while they agreed offshoring financial services could reduce costs, they were deterred by cultural and language barriers and fears it could lead to a loss of interaction and delivery problems.
The survey was carried out by SKS Business Services to establish what the most important factors are in determining an SME’s choice of accountant.
However Ian Herbert, deputy director at the Centre for Global Sourcing and Services and senior lecturer at Loughborough University School of Business and Economics said: “We are seeing more examples of second-tier businesses letting go of parts of their back office administration and it’s not just about cost.
“Standardised IT platforms and robust internet connectivity are enabling new possibilities for more imaginative sourcing solutions.
Sanjay Swarup, director of SKS Business Services, added: “While many larger companies are now looking at the country best suited to do their work in order to drive down costs, the benefits of shared services are yet to be fully appreciated by smaller and medium-sized companies.”