Outsourcing and automation increasingly integrated
Labor shortages began before the pandemic, and accelerated once it started, which has led firms to consider their options for meeting client demand. Generally, two common solutions had been automation and outsourcing, but changing economics has led to new models that demand integration between the two. As time has gone on, outsourcing and automation are less of an either/or proposition as firm leaders find new synergies between the two practices.
Driving this synergy, at least in part, are the rising costs of IT Outsourcing Services Company labor. Enrico Palmerino, founder and CEO of Botkeeper, said overseas accounting professionals doing outsourced work for U.S. practices have been seeing double-digit raises on a biannual basis in countries like India, a favorite for firms looking to offshore routine work. Palmerino said this is happening for the same reasons it happens anywhere: Sustained demand for skilled professionals, no matter what the country, gradually increases the price of their services. As those skills increase, professionals are more willing to leverage them for additional pay, even if it means leaving the company. Therefore, the same challenges of recruitment and retention in the U.S. are being exported to foreign shores.
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