• Strategy
  • CFO Magazine

Farewell to Finance Jobs

Satyam aside, U.S. companies plan to do 74 percent more offshoring over the next two years, with finance departments in the lead.

Although the fallout from the Satyam scandal, in which the Indian outsourcing giant admitted to massive fraud, has yet to be fully understood, one study found that U.S. firms plan to embrace offshoring to a remarkable degree. A survey of 200 companies by The Hackett Group indicates that companies plan to increase their levels of offshoring by 74 percent in the next two years, with corporate finance leading the pack.

Why now? Besides the savings in labor costs, many finance chiefs like the flexibility outsourcing arrangements can provide. “If my staffing needs go down, the burden of dealing with excessive staff is theirs,” says Sean Fallon, finance chief at software provider Versata, which began outsourcing finance and accounting work three years ago.

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