Offshore Tax Return Processing Continues to Gain Favor
Recognizing a growing trend, last month, CCH announced a new product, Prosystem fx Outsource, which utilizes trained tax preparers to help U.S. CPA firms by utilizing offshore, lower cost professionals to prepare tax returns. The idea is to help reduce or eliminate the tax season staffing spikes in most CPA firms by presenting a proven outsourcing alternative.
Another service provider, Outsource Partners International (OPI), announced this week that Rucci, Bardaro & Barrett, pc (RBB), a 25-person firm north of Boston, has decided to leverage OPI's offshore processing center in India for processing up to 70% of its Tax Returns. RBB, which had outsourced to OPI a pilot run were extremely satisfied with the quality of services provided, as well as the tremendous advantages and benefits that it has derived.
The benefits of offshore tax return services are clear, resulting in a much lower per-unit cost for tax preparation. But as the incidents of offshore outsourcing become more frequent, clients will have to better manage the business risks that arise from working with a service provider half a world away. A great resource for any potential client of an offshore business provider is law firm Fenwick & West's Key Service Agreement Issues: Service Providers Checklist, which outlines fifteen main areas of a service agreement that need to be clarified to lower any associated risks.