The Art of Outsourcing Without Destroying Your Local Team

Outsourcing is a transformative strategy for accountancy firms, but navigating the local staff dynamics is a critical aspect often overlooked. In my experience, no firm that embraced outsourcing ended up dismissing their Australian staff due to outsourcing. However, the process did expose challenges related to resistance and fear among local teams.

I encountered this at Moore Stephens and Deloitte. The other Australian staff did not like the idea of SMSF outsourcing one bit, despite the fact they didn’t do the work themselves.

The introduction of outsourcing can be perceived by local staff as a threat to job security, sparking resistance and reluctance to embrace the change. This fear can manifest as conflicts, communication breakdowns, and even sabotage of the outsourcing process. Recognising these challenges is crucial for creating a smooth transition.

To overcome the hurdles presented by local staff dynamics, proactive strategies can be implemented:

1. Open Communication and Transparency: Engage in open and transparent communication with local staff. Address their concerns, be upfront about the benefits of outsourcing, and provide reassurance regarding job security. Encourage feedback and collaboration.

2. Training and Adaptation: Offer training programs to help local staff adapt to the changes introduced by outsourcing. This proactive approach ensures that the team is well-prepared for the transition and feels supported throughout the process.

3. Highlight Complementary Roles: Emphasise that outsourcing is not a replacement for local staff but rather a complementary resource. Encourage collaboration between local and outsourced teams, showcasing how each contributes to the overall success of the firm.

4. Recognize and Address Fears: Acknowledge the natural fears associated with change and outsourcing. By understanding the concerns of local staff, firms can tailor their approach to alleviating fears and fostering a positive environment.

5. Cooperative Environment: Create a cooperative and inclusive work environment that values both local expertise and the advantages of outsourcing. This collaborative culture ensures that the entire team works together seamlessly.

While challenges may arise, the proactive implementation of these strategies ensures that local staff becomes an integral part of the outsourcing process. By addressing concerns, providing support, and fostering collaboration, accountancy firms can harness the full benefits of outsourcing while maintaining a harmonious and productive work environment.

I'm Kane from Active Outsourcing (www.activeoutsourcing.com.au), offering over 15 years of experience in outsourcing, including initiating the SMSF outsourcing team at Moore Stephens and managing the National Deloitte Outsourcing team in Australia. I'm passionate about sharing insights on outsourcing and accountancy, so feel free to connect and ask questions.