India's GKM Looks for U.S. CPAs to Try Audit Outsourcing
New York (March 25, 2004) -- G.K. Management Services, a provider of business process outsourcing services with headquarters in Tamil Nadu, India, is soliciting U.S. accounting firms with an interest in offshoring some of their audit work.
On a visit to the U.S. earlier this month, GKM director Karthi Keyan made the rounds of accounting practices, since "We're looking to enter the auditing area" with American CPA partners. Without identifying them, Keyan said he was successful in enlisting one accounting firm, and is close to setting up a "test pilot" with a second firm.
GKM began offering tax preparation outsourcing last year. The company now has a formal alliance with RIA in place, is working with seven U.S. CPA firms, and expects the number of outsourced returns it handles to exceed 1,500 this year. RIA is a Thomson business.
In related outsourcing news, CCH Tax and Accounting has formed a strategic alliance with Mphasis Group, which has headquarters in Bangalore, India. The deal ensures cooperation between the CCH ProSystem fx Outsourcing service and Mphasis, which can accommodate offshored individual and business returns via its Virtual Tax Room framework.
CCH already has a "primary" tax outsourcing partner in Datamatics, based in Mumbai, India, noted Mike Sabbatis, sales and marketing vice president for the Riverwoods, Ill.-based CCH Tax and Accounting. With outsourcing growing in popularity, the company decided to enlist a second partner. "We believe they can scale to the capacity we need," said Sabbatis.
-- Richard McCausland