Reinventing Outsourcing: How We Stayed Ahead of the Curve

00:00:00.450 [Music]
00:00:12.120 hey everyone Welcome to our first
00:00:14.200 episode of 50 shades of accounting
00:00:16.320 profit power and p&l the podcast where
00:00:19.640 we Deep dive into the stories and
00:00:22.039 strategies shaping the accounting
00:00:23.720 industry in the US and UK as a whole I’m
00:00:26.640 your host Sagar Ahuja and today we are
00:00:29.439 talking about something really big we
00:00:32.159 are going to peel back the layers of how
00:00:34.480 firms are staying ahead in this
00:00:36.360 competitive Race by embracing the
00:00:39.320 forward-looking strategies and you know
00:00:41.879 that Outsourcing is definitely one of
00:00:44.559 them it is more than a buzz vote it has
00:00:47.600 a special place in the world of
00:00:49.680 accounting today it’s a revolution on
00:00:51.879 its own and at QX you’ve seen it all in
00:00:55.960 fact we have been leading the
00:00:57.199 transformation for over 20 plus years
00:00:59.600 now from the early days of body shop
00:01:01.920 solutions to becoming the Strategic
00:01:04.680 partners for the firms around the world
00:01:07.479 we are not just filling the gaps anymore
00:01:09.600 we are managing the entire process
00:01:12.159 introducing automation helping firms to
00:01:14.960 thrive and survive joining me today is
00:01:18.680 prit Naidu VP client relations who has
00:01:21.040 been with the organizations for over a
00:01:22.840 decade he has seen it all he’s been a
00:01:24.799 key player at QX and has seen firsthand
00:01:27.880 how we have stayed ahead in this race
00:01:30.479 pramit Welcome to our show thank you so
00:01:33.560 much Sagar it’s it’s great to be here and
00:01:35.560 I’m really excited you know this being
00:01:37.880 our first podcast where you talk about
00:01:40.000 the journey on how Outsourcing has
00:01:42.040 become so much more than just some cost
00:01:45.119 cutting strategy it’s about growth
00:01:47.479 efficiency and staying ahead in a
00:01:49.799 rapidly changing
00:01:51.759 industry absolutely promi you said uh
00:01:55.399 whatever you said it was sounding music
00:01:57.240 to my ears in fact uh let’s kick the
00:02:00.000 things Sol with a little history
00:02:02.119 Outsourcing as you know wasn’t always
00:02:04.560 the Strategic Powerhouse it is today
00:02:07.399 back then when QX started Outsourcing
00:02:09.639 was about Body Shop about Manpower just
00:02:12.840 filling the positions and getting things
00:02:15.040 done but as we quickly learned the
00:02:17.800 modern wasn’t sustainable can you walk
00:02:20.200 us through how we evolve from a basic
00:02:22.480 Body Shop solution to becoming the true
00:02:25.160 partners of our
00:02:26.920 clients absolutely Sagar I think one of
00:02:29.440 the first memories that comes to my mind
00:02:31.920 without sourcing is people calling it
00:02:34.040 call centers and you know a lot has
00:02:36.720 evolved and changed over the years 20
00:02:38.720 years is is not a small span right but
00:02:41.760 over the years you know we have been
00:02:43.480 providing firms with extra hands to
00:02:45.519 handle routine tasks and so did the
00:02:48.239 demands of the industry change as well
00:02:50.040 as we progressed you know clients needed
00:02:52.319 more than just people they needed
00:02:54.040 Solutions and we realized that in order
00:02:57.040 to keep up with that change we had to
00:02:59.519 change our approach as well right we
00:03:01.280 couldn’t still continue providing that
00:03:03.159 old
00:03:04.080 school solution or a method of just
00:03:07.280 providing people you know so we became
00:03:09.680 one of the first people to introduce the
00:03:11.400 manage Solutions you know instead of
00:03:13.400 just providing resources we were
00:03:15.440 managing entire processes taking
00:03:17.560 ownership of workflows ensuring that the
00:03:20.120 results were aligned with the client’s
00:03:21.879 goals it wasn’t just about Manpower
00:03:24.840 anymore it it was about strategy a
00:03:27.480 solution on how how out sourcing becomes
00:03:30.640 an integral part of an accounting firm
00:03:33.560 so we’re just not vendors we become an
00:03:36.200 extension of their teams we are their
00:03:39.200 partners and prit the shift from
00:03:41.400 manpower to strategy didn’t stop there
00:03:43.439 isn’t it uh I mean one of the biggest
00:03:45.239 changes that you’ve seen in the industry
00:03:47.360 is the rise of Automation and in fact
00:03:49.959 the firms who embraced automations and
00:03:52.480 of course the practice of the future as
00:03:54.040 we call it at QX it has actually driven
00:03:57.840 the change so much in the industry
00:04:00.280 tell us how automation became a game
00:04:02.599 Cher for QX and our clients any any
00:04:06.519 light on that absolutely I think um
00:04:09.280 we’ve seen that and sagur you’ve been
00:04:10.840 part of those conversations where we’ve
00:04:12.439 had with these firms you know as they’ve
00:04:14.439 been growing the complexity of their
00:04:16.478 needs have evolved you know we knew that
00:04:18.639 the manual processes you know couldn’t
00:04:20.839 keep up with the pace you know so we
00:04:22.680 integrated automation tools into our
00:04:24.680 manage Solutions know allowing us to
00:04:26.960 handle repetitive tasks like data entry
00:04:29.080 and compliance work more efficiently you
00:04:31.680 know we’ve seen that shift s and it was
00:04:33.639 very evident you know when when boxes of
00:04:36.080 paper used to come into our offices you
00:04:38.160 know there’s to be somebody who’s to
00:04:39.440 scan it and then upload it there are
00:04:41.560 tools that that can actually change that
00:04:43.560 for you you just upload it the documents
00:04:46.560 get scanned and it’s out there for you
00:04:48.400 to post right there’s so much work
00:04:50.320 that’s been taken off but it’s all for
00:04:52.320 the better right so this meant our
00:04:54.600 clients were free to focus on on really
00:04:57.320 high level strategic work you know more
00:04:59.160 on ADV advisory talking to their clients
00:05:01.919 advising them guiding them and in fact
00:05:04.280 this year you know we we are also
00:05:05.680 offering one of our tools called Robo
00:05:07.479 1040 to our clients in the US and I’m
00:05:10.479 telling you this is going to be an
00:05:12.400 amazing tax season and the clients will
00:05:15.280 realize how much easier and how much
00:05:17.479 efficient things have become since this
00:05:20.000 tool is being implemented for the stack
00:05:21.759 season and exactly promi you have
00:05:24.199 absolutely nailed it and here’s where
00:05:26.160 the number really back it up the global
00:05:28.919 Outsourcing market for outsourcing
00:05:31.160 Services was valued at 130 bill in 2021
00:05:35.199 uh the size of the addressable Market as
00:05:36.919 we call it and it’s expected to grow by
00:05:40.199 6.2% annually through 2030 now
00:05:43.800 automation is just not a trend it’s the
00:05:46.360 future The Firm who automates they build
00:05:49.440 up the capacity and of course they’re
00:05:51.080 able to deliver you’ve been of course
00:05:53.199 hearing me talking about how firms are
00:05:55.919 using the pyramid model approach to a
00:05:58.360 diamond model approach where the bottom
00:06:00.160 of the pyramid is actually taken care of
00:06:02.759 by Automation and Outsourcing so it’s
00:06:04.639 really changing quite a bit I absolutely
00:06:06.759 agree thanks for those lovely comments
00:06:08.919 thank you Sagar Now let’s change
00:06:11.080 the gears yeah let’s talk about one of
00:06:13.280 the biggest Innovation that we brought
00:06:15.000 to the table managed ft solution you
00:06:17.919 know that I’ve been a big fan of
00:06:19.639 operating model I compare at times why
00:06:21.919 TCS with Pro infosis they have become
00:06:24.800 the giant of the industry in the BPM
00:06:26.960 industry when we call it here in India
00:06:29.160 the industry as a whole when it comes to
00:06:32.039 Outsourcing from India hasn’t kept pace
00:06:35.240 with that now could you throw some
00:06:37.240 lights on it how you’re changing the
00:06:38.919 operating model and what innovation has
00:06:41.400 been brought into the operating model as
00:06:43.400 a whole S as as you know the the market
00:06:46.400 has definitely evolved and is it isn’t
00:06:49.080 just providing people isn’t isn’t about
00:06:52.199 providing more bums on seats it’s about
00:06:54.520 providing a solution like I talked about
00:06:56.960 so what we are providing is something
00:06:59.080 called a ft model and we’ve built in a
00:07:01.639 four ride review mechanism to to ensure
00:07:04.199 greater accuracy and quality
00:07:06.560 control and that’s a standard and that’s
00:07:08.720 a default that we want to offer with
00:07:10.599 every single FTE that comes in you know
00:07:13.360 in in
00:07:14.280 essence the aim is to ensure we reduce
00:07:18.080 the review points that are being picked
00:07:19.680 up by the clients you know and I keep on
00:07:23.319 hearing you know um so the review side
00:07:26.520 is one thing prit but the onboarding the
00:07:29.520 transition the governance the review
00:07:31.520 which we talked about is absolutely
00:07:34.440 inbuilt into the operating model into
00:07:37.520 the bage dep solution isn’t it it helps
00:07:40.080 aot there now that’s that’s true sag and
00:07:43.240 this this is the approach that that has
00:07:45.000 given a clients the confidence that
00:07:46.919 knowing every single financial statement
00:07:49.000 their tax return their audit files are
00:07:51.479 thoroughly checked by two professionals
00:07:53.639 before it reaches them you know in fact
00:07:55.680 ever since we put this model in place
00:07:57.479 our NPS has improved uh to
00:08:00.759 89 uh and the seat scores are closer to
00:08:04.000 96 and it’s a tremendous jump we’ve seen
00:08:07.879 since the implementation of this model
00:08:10.199 and it’s a reflection of what we’ve been
00:08:12.479 able to deliver for our
00:08:14.800 clients absolutely it’s it’s a great one
00:08:17.400 I mean when you said the Cat close to 96
00:08:20.120 and of course NPS 89 I mean I was
00:08:22.759 literally trying to jump on my chair and
00:08:25.159 it’s it’s more than the gold standards
00:08:27.280 that you see in the Outsourcing world
00:08:29.039 right it’s absolutely going through the
00:08:30.720 roof uh so thank you for that mate
00:08:33.159 really appreciate that all right so uh
00:08:35.320 that’s the key point from it and uh it
00:08:37.399 just not about surviving the tax season
00:08:39.599 or the audit Rush isn’t it it’s about
00:08:41.760 creating a sustainable model for growth
00:08:45.200 by Outsourcing the right way using
00:08:47.800 manage solution you talked about or
00:08:50.360 automation for that matter where firms
00:08:52.399 can really focus on the bigger picture
00:08:54.640 so let’s talk about the future now if I
00:08:56.480 can how do you see firms uh staying
00:08:59.640 ahead of the curve with changes
00:09:01.200 happening in the accounting World
00:09:02.640 especially to do with
00:09:04.640 technology absolutely Saga I think um uh
00:09:07.560 that’s a very important point and people
00:09:09.320 would need to see the history of how
00:09:11.320 things have evolved and changed and I
00:09:12.760 think one of the points I didn’t mention
00:09:14.440 was a simple thing like scanning
00:09:16.240 documents you know how technology is
00:09:17.800 supporting as well but in the initial
00:09:20.760 years Outsourcing was more of a stop
00:09:22.920 capap Arrangement where people were just
00:09:24.680 wanting to to fill in a gap where
00:09:26.760 somebody’s not available somebody’s on
00:09:28.360 to leave somebody
00:09:30.160 um you need additional support during
00:09:31.839 the tax season that’s where the
00:09:33.720 Outsourcing element was looked at over
00:09:36.160 the years that changed to becoming more
00:09:38.680 of a people-based model where you
00:09:40.440 started looking at people and resources
00:09:43.320 on how they can actually support and
00:09:45.399 become an extension of their organized
00:09:47.399 that evolved further to being able to to
00:09:50.519 provide Solutions where these people
00:09:52.800 become integral part of the business and
00:09:55.079 not just somebody who’s delivering the
00:09:57.200 work and we’ve seen those people coming
00:09:59.519 over uh and working from client offices
00:10:02.120 and we’ve seen clients travel to to
00:10:04.279 India offices as well to look at the
00:10:06.079 setup and how things are and moving from
00:10:09.920 there you’re looking at a more
00:10:12.120 technology dependent Solutions right a a
00:10:15.480 blend of both Outsourcing not just the
00:10:17.839 work uh but Outsourcing the technology
00:10:20.240 aspect of it of how that that gels well
00:10:24.360 the amalgamation of the two aspects of
00:10:27.399 of this sort of a model that takes the
00:10:30.320 future uh ahead for these accounting
00:10:32.560 firms and like I said it has to become a
00:10:35.639 strategic element of your business right
00:10:38.160 where you’re looking at it not just as a
00:10:40.200 vendor as a partner and looking at the
00:10:43.720 future of how this integrates well with
00:10:45.720 your business plans with your growth
00:10:47.839 strategy and getting the buy of the of
00:10:50.720 the leaders of of the Outsourcing firm
00:10:52.800 as well to equally contribute and and
00:10:55.519 keep the company ahead in the
00:10:58.240 race super thank you for that from it
00:11:00.839 and that’s the key message isn’t it I
00:11:02.639 mean we keep on saying change is the
00:11:05.040 only constant but reinvention is
00:11:07.360 obviously very very important there and
00:11:09.920 QX didn’t get to the place where we are
00:11:12.360 today practically the market leader by
00:11:14.920 sticking to the old ways we grew because
00:11:17.279 we embraced changed we introduced new
00:11:19.639 Solutions we got uh to have you know
00:11:23.000 that strategic Partnerships with the
00:11:24.920 firm really you know hand in glove and
00:11:27.160 we want the same for our listeners as
00:11:28.720 well if your firm is still thinking
00:11:30.320 about Outsourcing as just way to cut
00:11:32.160 cost it ain’t going to happen you’re
00:11:34.360 missing out on the big picture for sure
00:11:36.440 Outsourcing automation manage services
00:11:38.839 these are the tools that will help you
00:11:41.519 to stay ahead of the curve and build a
00:11:44.240 firm that is future proof literally
00:11:46.399 becoming practice of the future yeah
00:11:48.959 isn’t it from it exactly sagur and you
00:11:52.760 know my advice is you know don’t wait
00:11:54.600 for the industry to force your hand at
00:11:56.519 it be proactive um you know partner with
00:11:59.639 the right people look at what your firms
00:12:01.600 need look at where the industry is
00:12:03.320 driving in the future the new
00:12:05.200 technologies that you want to implement
00:12:07.200 in your business to help you scale up
00:12:08.920 and grow and you know that shift uh of
00:12:12.200 mindset from a c cost cutting uh
00:12:15.279 approach to a growth approach will make
00:12:17.600 all the difference thank you very much
00:12:19.800 pramit for those beautiful insights and
00:12:21.800 guys U that’s all for the episode of 50
00:12:23.800 Shades of accounting and I’m soer
00:12:26.279 reminding you that in the world of
00:12:27.800 accounting firms it’s the bold move that
00:12:30.120 counts change is the only constant we
00:12:32.240 talked about it and if you want to be
00:12:34.040 the smartest firm stick around more
00:12:36.800 great content is coming very very soon
00:12:39.399 subscribe review and share thank you
00:12:41.880 very much