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Mid-sized accounting and tax firms across the U.S. and Canada face a tough reality.
Talent shortages and rising wages at home make growth challenging. To break this blocker, many are looking overseas, particularly toward establishing offshore offices in India.
This guide lays out the practical realities clearly, with data and examples to help you in setting up an offshore office in India. We cover what's driving firms offshore, how India compares to alternatives, why India is often the best choice, and what it takes practically; costs, potential returns, team structures, managing remote work, avoiding common pitfalls, and more.
By the end, you'll know exactly how to set up an Indian offshore office that fits your firm's long-term plan.
Why Are Firms Setting Offices Offshore?
Ten years ago, offshoring mostly meant trimming costs. But today, accounting and tax firms see it differently. Let us understand what is driving this movement.
1.1 North‑American talent crunch and wage inflation
North America’s accounting labor market is in structural shortfall.
- Talent collapses. The U.S. has lost over 300 k accountants and auditors since 2019, while CPA‑exam participation has fallen more than 30 % since 2016.
- Aging workforce. With 65 % of partners already past 50 and 75 % of AICPA members at or near retirement age, replacement demand will climb steeply through 2030. (accountingtoday.com, auxis.com)
- Escalating salaries. Entry‑level accounting wages spiked 21 % YoY in early 2023, and the broader private‑sector wage index still grew 3.5 % in the year to March 2025 despite cooling inflation.
- Canada mirrors the squeeze. Nine in ten Canadian finance hiring managers cannot find the talent they need, forcing 47 % to sweeten pay and 53 % to add contract staff just to keep projects moving.
1.2 Rising cost and workload
- Salary inflation is now the norm. A 2024 Robert Half survey found that 45 % of firms are sweetening offers with referral bonuses and 40 % have already raised entry‑level salaries for accountants to stay competitive.
- Even that isn’t enough. Mattel, Tupperware and more than a dozen other US‑listed companies have missed SEC filing deadlines in the past 18 months because they simply couldn’t staff their accounting desks in time.
- The hidden price tag: burnout. Entry‑level accountants in the US now start around $55 k–$60 k a year, yet heavy workloads and repetitive close‑cycle tasks mean many leave long before they pay back the recruiting cost.
1.3 Global‑workforce mindset
The pandemic proved that a month‑end close runs just as smoothly over Zoom as it does in a conference room. As a result, firms that once viewed offshoring as a last‑ditch move now see it as a primary lever for resilience and scale.
- Another motivator. 59 % of companies outsource chiefly to cut costs, but they’re increasingly citing 24/7 workflow coverage and access to scarce skills as equal motivators.
- Turnaround speed. Cloud ERPs, secure VPNs and ubiquitous collaboration tools mean a staff accountant in Tamil Nadu can update work‑papers while a partner in Toronto sleeps shaving an entire business day off turnaround times.
1.4 Entrepreneurial push
- Same happened with IT services. With talent tight, entrepreneurial offshore providers have proliferated to meet the demand. The Big Four accounting firms alone now have well over 140,000 professionals in their India global delivery centers, mirroring the large-scale offshoring boom seen in IT services decades ago.
Drive is high. Beyond the Big Four, a wave of specialized outsourcing vendors and staffing platforms has emerged, making it easier even for mid-sized CPA firms to leverage overseas accountants. In short, market forces are encouraging firms to “go where the talent is”, and India has become a prime destination.
2. Choosing a Destination: Fast Snapshot of India, Philippines & Latin America
2.1 Side‑by‑side table (talent depth, CPA equivalents, cost, scalability, time‑zone fit)
2.2 Why India wins for accounting/tax work (scale, leadership layer, incentives)
1. Talent Depth & Scalability:
- India dominates the global outsourcing industry with approximately 37% market share.
- Home to over 350,000 Chartered Accountants (CAs), the largest pool worldwide.
- Extensive pipeline of trained junior staff allows rapid expansion during peak periods like tax season.
- Talent continuously refreshed by an annual influx of tens of thousands of commerce graduates.
- Proven ease of scaling teams up or down quickly without compromising operational stability.
2. Cost Advantage:
- Entry-level accountants available at approximately $350/month, the lowest globally.
- Senior accountants and managers generally cost only 30–50% of their U.S. counterparts.
- Enables firms to hire multiple offshore staff members for the cost of one domestic junior.
- Savings from offshore operations can be strategically reinvested into improved technology, superior client service, or higher profit margins.
3. Qualifications & Credentials:
- Large pool of professionals qualified as Chartered Accountants (CA) and ACCA holders.
- Growing number of accountants certified as U.S. CPAs, thanks to targeted training initiatives by the Big Four accounting firms.
- Dedicated training academies rapidly prepare candidates with international certifications like CPA and IFRS.
- Seamless integration with U.S. accounting standards, processes, and compliance frameworks.
4. Time Zone Alignment with North America:
- India's time zone (9½–12½ hours ahead) is ideal for overnight "follow-the-sun" operational efficiency.
- Tasks initiated during U.S. business hours can be completed overnight in India, dramatically reducing turnaround times.
- Allows North American teams to start their day with completed deliverables, significantly accelerating workflow.
5. English Proficiency & Cultural Alignment:
- Over 128 million proficient English speakers, the second-largest English-speaking population globally.
- High levels of written English fluency essential for clear financial reporting and client communication.
- Cultural familiarity due to decades of collaboration with U.S. and Canadian multinational corporations.
- Process-oriented work culture aligns closely with North American professional expectations.
6. Infrastructure & Operational Continuity:
- Established Business Process Outsourcing (BPO) hubs with proven track records serving global financial clients.
- Government-backed Special Economic Zones (SEZs) and finance-centric hubs like Gujarat International Finance Tec-City (GIFT City) offer substantial tax incentives, streamlined regulations, and top-tier infrastructure.
- Reduced disaster risk compared to many other offshore locations, ensuring reliable, uninterrupted service delivery.
7. Mature Leadership & Management Layer:
- Existing senior talent with substantial experience managing U.S. GAAP financial close processes, multi-state tax filings, and compliance tasks.
- Professionals adept in globally recognized methodologies like Lean and Six Sigma for continuous improvement.
- Accessible, seasoned management expertise that would otherwise be cost-prohibitive in North America.
- Clear, established career progression pathways that help retain experienced offshore leaders.
This comprehensive set of advantages explains why India consistently outperforms other outsourcing destinations for accounting and tax work, offering unmatched scale, experienced leadership, cost-effectiveness, and supportive incentives.
Will Offshoring to India Make Client Service Better or Worse?
You're not building something brand new here. You're stepping into a system that's already working for many other firms. Done properly, having a team in India can improve client satisfaction instead of hurting it.
The main idea is simple: handle client interactions and critical conversations at home and send routine tasks to India. Keep roles like relationship management and strategic planning local.
Tasks like bookkeeping and preliminary tax preparation can be handled overnight in India, ensuring completed work is ready by the morning. Clients get faster responses, your local team avoids burnout, and overall service improves.
Deciding Which Roles Stay Local and Which Go to India
First, identify roles by how directly they interact with clients:
- High-touch roles: Relationship managers, senior advisors, or anyone needing detailed, direct client communication stays local.
- Medium-touch roles: Controllers and reviewers typically remain onshore until trust in offshore processes is established. Eventually, these roles can be reconsidered.
- Low-touch roles: Routine activities like bookkeeping, data entry, and payroll processing which are straightforward checklist tasks are ideal for your India team.
Clearly define these roles before you pick your offshore location.
Without a clear plan, you risk wasting resources.
Remote or Office-Based? Decide Based on Your Team
"Going fully remote" sounds straightforward but isn't always practical.
Cultural differences, work habits, and collaboration styles vary significantly. For highly experienced teams familiar with their roles, remote work can succeed. But if you're hiring junior staff, planning rapid growth, or collaboration is crucial, having an office even overseas is usually better.
Physical offices improve oversight, accelerate training, and enhance data security.
Consider these four factors:
- Team Experience: Experienced team vs. junior team needing coaching
- Collaboration Needs: How frequently real-time collaboration is required
- Budget: Office space in India is cost-effective but still impacts your budget
- Growth Plans: How fast do you plan to expand?
Be careful about comparing roles across different locations always compare similar roles directly. A senior in Mumbai vs. a senior in New York gives a more accurate view of cost and value.
What Are the Cost Implications and Potential Savings of Building a Global Accounting Team?
Offshoring creates a leaner, faster, and more scalable firm. The financial upside is real. When done right, global expansion can free up capital, improve margins, and allow you to reinvest in what matters most client experience and growth.
Let’s break it down:
1. Cost Comparison: India vs. the U.S. (or Anywhere Else)
Many firms start with a simple comparison: what does it cost to hire in India versus hiring in the U.S.? But the reality is, this isn’t a like-for-like equation. You need to compare equivalent roles in equivalent markets not a junior bookkeeper in Texas with a senior accountant in Mumbai.
Take a senior accountant role in a U.S. metro area like New York or San Francisco. You could easily be paying $80,000–$100,000+ annually. A comparable professional in Mumbai with similar experience, solid English fluency, skilled in U.S. tax and compliance might cost a third of that. But again, it’s not just the salary. You’re also comparing:
- Talent maturity
- Work output
- Support structure
- Overhead
That’s why the smarter benchmark is the total cost of ownership not just headcount expenses. And when you factor in delivery speed, burnout reduction, and productivity lift from a round-the-clock model, India almost always pulls ahead.
2. Cost of Setting Up a Global Delivery System
Yes, there are startup costs. But they’re manageable—and they pay off over time.
If you go the traditional route and form your own entity in India, here’s what to expect:
- Company setup cost (India): ₹80,000–1,00,000 INR
- Notarization (U.S.): $800–$1,200
- Apostille (U.S. documents): $2,000–$3,000
The full process of company registration, documentation, and banking can be sped up (with the right advisor). Once you’re up and running, operating costs (rent, systems, payroll) are significantly lower than U.S. equivalents.
There are also stopgap solutions, like EOR (Employee on record) (e.g. Deel or Remote.com), which handle payroll and compliance for your overseas hires no entity setup needed. But beware: while EORs are convenient, they’re expensive at scale. Think: $500 per onboarding/offboarding + monthly fees. Better for short-term hires, not long-term scale.
3. The Compliance Angle
One area that trips firms up is compliance. Setting up a global delivery system requires paperwork, process, and time. But it’s not rocket science and it’s not unmanageable. India has clear rules for foreign-owned private limited companies. You’ll need:
- A resident Indian director
- A unique company name
- Full KYC documentation
- Attention to regular filings and compliance once set up
All of this is straightforward with the right advisor and buffer time. The biggest risk is underestimating the time required, not the complexity itself.
Is an EOR Platform the Right Way to Hire Offshore?
If you're just testing the waters with one or two offshore hires, platforms like Deel, Remote.com, or Oyster can help you get started without setting up a legal entity. They handle payroll, compliance, and local labor laws so you stay on the right side of regulation.
But the issue is that it comes at a steep price. EORs charge onboarding fees plus monthly per-employee costs, which add up quickly as your team grows. They’re great for short-term experiments, but not built for long-term scale. If you're serious about expansion, building your own delivery setup is more cost-efficient and sustainable.
Conclusion
India has established itself as the ideal choice for accounting and financial firms looking to expand efficiently. With its deep talent pool, solid infrastructure, and readily available leadership talent, the ecosystem is already set up, you just need to step in.
However, successful offshoring doesn't happen by chance. It requires careful planning: identifying roles clearly, knowing exactly how much interaction each position needs with clients, and setting things up right from the start.
If you're considering an offshore operation, our team can walk you through the entire process from strategic planning and finding the right people, to handling compliance and getting your office up and running smoothly
