The capacity crunch: Do's and don'ts of outsourcing

September 18, 2025 3:45 PM

The accounting profession's current talent crisis is causing firms to rethink their recruiting and retention strategies, but also traditional workforce models.

Firms are looking to strategies like outsourcing, offshoring and partnering with other firms to combat the strain. Those that have already embraced these practices share what has worked well, what remains a challenge, and what's next.

We've assembled a few of the strategies they recommend and some new ways of thinking about workforce management into a list of helpful do's and don'ts.

Magnet for staff or employees concept art

Do use outsourcing/offshoring to alleviate the talent shortage

Top 25 Firm Citrin Cooperman adopted an outsourcing model in response to "the talent challenges that exist in the U.S.," shared Melissa Hartshorn, the New York City-based firm's chief people officer. "We realized we needed to leverage talent elsewhere and there is a significant cost component."

Wiss, a Florham Park, New Jersey-based Top 100 Firm, outsources a percentage of tax returns, which "we try to look at as an extension to the team," explained CEO and managing partner Paul Peterson. "We had been doing it on the preparation side, not really the review — the quantity was something like 20%. We look at the imbalance of the number of returns relative to the number of preparers available. We've been doing it for a while and thought about doing more there."

Top 25 Firm Aprio was responding to a similar imbalance when setting up overseas operations.

"Several forces influenced our decision, including the rising costs of domestic talent and the significant decline in the number of students entering the accounting profession," reported Gwen Larkin, partner, global tax operations. "To continue delivering exceptional service while supporting sustainable growth, we made strategic investments in building a global team."

Top 25 Firm Ascend acquired Sentient Solutions in Hyderabad in early 2023 and is scaling a global capability center to serve the firms on its private equity-backed platform across tax, CAAS and audit, said Josh Frank, Ascend's senior manager, Sentient success. He added that this year Ascend expected about 10% of total hours to be delivered through Sentient.

"We realized early in Ascend's journey to revitalize the accounting profession that many of the core challenges facing today's CPA firms stem from people-related pressures: making space for teams to focus on fulfilling, career-accelerating work and maintaining a healthy work-life balance in a seasonal business in the face of rising client demand," said Frank.

"At the same time, we saw an incredible opportunity in Sentient — highly motivated, skilled professionals in other geographies eager to contribute meaningfully to the work of U.S. firms," he continued. "We believe that by building a model rooted in true team integration and with the right structure, we could empower firms to scale thoughtfully, deliver higher-quality service, and build teams that feel connected — not outsourced."

Don’t stick to strict definitions

The traditional idea of outsourcing does not always align with the current methods employed by accounting firms, leading many to redefine their practices.

"We don't view it as outsourcing," said Hartshorn. "We have two offices in India, 500 people there now. Our employees are employed by Citrin Cooperman India. We don't talk about it as outsourcing — it's just as much as being part of the firm sitting in our California or New Jersey offices."

Other firms similarly report using different terms to be more inclusive of these remote workers.

"We don't think of our model as traditional 'outsourcing' or 'offshoring' — in fact, we've intentionally removed those terms from our vernacular," said Frank. "At Sentient, we operate as a true global team, with managed pods of professionals embedded directly within the operations of the partner firms we support. In many ways, these team members function like remote employees, fully integrated into the day-to-day workflows and culture of each firm."

Aprio has coined a whole new designation.

"At Aprio, we use a model we call 'smartsourcing' within our tax practice," explained Larkin. "We have built a direct presence in the Philippines and Colombia with Aprio team members and collaborate with Datamatics to support our operations. Today, our global teams support the preparation of business and individual income tax returns, R&D tax credit services, sales tax compliance and accounting engagements."

Don’t be afraid of cultural differences — embrace and benefit from them

Language barriers, time zone differences and cultural nuances are often described as challenges by firms utilizing outsourcing, offshoring or whatever term they prefer, but these issues are also mentioned as unexpected perks of globalizing their workforce.

Citrin Cooperman even hosts a popular exchange program.

"We have a robust India-U.S. exchange program," shared Hartshorn. "We send people from the U.S. to India for at least a period of two weeks for hands-on training and we send India folks to the U.S. during busy season. They spend eight to 12 weeks onsite with direct access to clients. It's a great program from a training and development standpoint, and cross exposure. It's a really great source of talent for us that we continue to rely heavily on, and people love it."

"The thing that is really amazing," she added, "is the quality of the work. It's very much what you get in the U.S."

Ascend has also seen great returns on its investment.

"Building a successful global talent model takes time, structure and intentional effort," said Frank. "Firms need to invest in training, process documentation and relationship building to unlock long-term success. The early lift can feel steep, but the talent we've found in India is consistently described by our partner firm leaders as 'ideal employees': smart, hard-working and eager to grow. When firms commit to that initial investment, the payoff is lasting and transformative."

These models also pay off when talent in countries like India seek out the firms building new presences there, as Hartshorn can attest.

"It's really compelling that people in India want to join Citrin Cooperman," she said. "The Big Four presence in India — Deloitte kind of owns Hyderabad. There's a reason they are attracted to Citrin Cooperman: the depth and breadth of work they get to touch. Other firms are siloed, having narrow programs. People in India are interacting directly with clients in the U.S. They really touch, feel, experience different things."

Citrin Cooperman ensures part of that experience is understanding cultural variances.

"There are nuances from a communication standpoint, different ways of interacting," Hartshorn said. "We have training for cultural sensitivities. For example, we are piloting a communications training for India staff now, for business-focused communication. In some cases, English is not their first language. We put things in place, to be manageable, bite-sized, but have a direct impact and add value."

Do reap the benefits

Firms that have added to their remote headcount have also tracked positive movement in myriad other areas.

Among the advantages Aprio has experienced with its efforts, Larken listed: "A 24-hour work cycle that improves turnaround times for clients; enhanced gross margins that fuel reinvestment into innovation and talent development; and strong employee loyalty, both onshore and offshore, driven by meaningful work and career opportunities."

For Ascend and its member firms, the impact has been transformative, according to Frank.

"Our global talent model has helped firms reimagine what's possible when they have more time and capacity," he said. "With the right support in place, teams can focus on their 'highest and best' work — the kind that elevates the organization, builds client trust, and drives long-term value. We're seeing professionals accelerate their career paths by spending more time developing new skills and building relationships with their clients."

Don’t stop at outsourcing and offshoring — explore other options

Beyond remote teams, firms are also partnering with other firms and firm alliances to support their capacity needs.

Wiss turned to its membership in the BDO Alliance.

'We have a relationship with an accounting firm in the BDO Alliance that built their own operation overseas. We were able to come to an agreement to provide a handful of people as an extension to our team," said Peterson. "It's been great, something we feel really good about. If there are any issues, we are not just dealing with an outsourced company, but we have more of a relationship with the domestic accounting firm to talk to them, help solve whatever issues are at hand."

Aprio provides partnerships for firms seeking out that support, with its capabilities recently expanded by its acquisition of the RSM US's Professional Services+ practice earlier this year.

"Aprio partners with CPA firms in a few key ways," explained John Bly, South Atlantic regional leader and tax partner. "Through our channel partner program, we support firms by handling client work they are unable to perform — whether due to independence requirements, technical specialization or capacity constraints. In addition, the Aprio Firm Alliance provides member firms with practice management resources, HR support, and learning and development programming to help them grow and strengthen their businesses."

"PS+ serves nearly 80 professional services firms across the U.S. and Canada, providing resources and advisory services in strategy, leadership development, operations and group buying solutions," said Bly. "Our vision is to be a trusted resource and advisor to firms navigating a rapidly changing marketplace."

Top 50 Firm Schellman also provides capacity-related relief.

"We've built strong partnerships with other CPA firms over the years, and for us, it's never been about competition, it's about collaboration," said CEO Avani Desai. "In some cases, we've done carve-outs of the SOC practice for firms, allowing them to focus on their core services while giving their clients access to our technical expertise. Other times, we receive business through referrals, and we act as an extension of their team. These partnerships are built on trust and alignment, and they've become an important part of our strategy."

Do expect more of this in the future

Many firms participating in outsourcing, offshoring, partnerships and beyond expect the trend to continue.

"Outsourcing and global teaming is only going to become more central to the accounting profession over the next five years," said Frank. "It's inevitable that a larger share of firms' work will be handled globally, and the firms that embrace this shift thoughtfully will gain a major advantage. Those that lag behind may face a tougher talent market, as professionals increasingly ask what kind of work they'll get to do — and whether it sets them up for personal growth and being the kind of trusted advisor they envision themselves being."

"We believe outsourcing will continue to evolve into a core operating model for accounting firms," predicted Larkin. "Rather than relying heavily on third-party vendors, firms will build and manage their own offshore teams, creating an integrated global workforce that delivers greater efficiency, specialization and client value."

Frank agrees with this greater integration.

"Looking ahead, we see global teams becoming more deeply embedded within firms, supporting more complex capabilities and engaging more directly in client service — especially as AI takes on more repetitive tasks," he said. "Rather than being a back-office function, global talent will become a visible, trusted part of the firm's client delivery model, enabling U.S. professionals to focus on what they do best: building relationships, growing the business, and shaping the future of the profession."

Desai's crystal ball reveals a similar outlook.

"Looking ahead, I see even more opportunity," she said. "As compliance, technology and AI continue to evolve, no one firm can be the expert in everything. We are one of the first, and still one of the few, CPA firms offering certification for ISO 42001, the new global standard for AI management systems. We have been partnering with firms in that space, where we handle the certification and they provide consulting and implementation services. That kind of ecosystem thinking is the future, and I think firms that lean into partnership rather than competition are going to thrive."

And whether exploring a partnership model like Schellman's or any of the other traditional or emerging workforce models, Desai's advice is sound.

"For other firms exploring this, my advice is to start with shared values, not just shared clients," she said. "Set expectations clearly, especially around communication and ownership. The biggest benefit is being able to serve clients more fully, but the challenge is making sure you stay aligned operationally as things scale."