Choosing the Right Offshore Office Model: A Guide for CPA and Accounting Firms in India
As CPA and accounting firms expand their operations to India with the establishment of offshore offices, they face the crucial decision of choosing the right office setup model, each with its own set of challenges and benefits. This choice can significantly impact their operational efficiency, cost-effectiveness, and ability to attract and retain talent.
In this comprehensive guide, we'll explore the three primary office models available to firms looking to establish their offshore presence in India, along with their pros and cons, and provide recommendations based on the MYCPE ONE Captives Ecosystem approach.
The No Office Model, or Distributed Teams approach, is characterized by firms not owning or leasing their own office space. Instead, they utilize shared office spaces managed by third-party providers like MYCPE ONE. This model is particularly suitable for firms with less than 50 staff members offshore.
Access to multiple locations across India and the Philippines without the burden of managing infrastructure, IT, etc.
It allows firms to hire talent across regions without the need for physical offices in every city.
This model is cost-effective and flexible, offering scalability without long-term commitments.
Less control over the workspace environment and culture due to shared spaces.
Teams are spread out, potentially impacting team bonding and cohesion.
In this model, firms fully commit to setting up their own office spaces, usually starting in one or two selected cities with the potential for expansion. This approach is suited for firms ready to invest in infrastructure and who want full operational control.
Complete control over the office environment, infrastructure, and company culture.
Ideal for firms that prioritize having all operations under one roof and plan long-term operations in specific locations.
Requires significant upfront investment in real estate, infrastructure, and compliance.
Significant ongoing overheads and challenges of managing the office.
Growth may be limited to the cities where the offices are established, potentially hindering expansion opportunities.
Talent pool access may be limited to specific locations.
Overview: The Hybrid Model involves establishing a primary base location in one or two cities where a significant portion of the team is located (third-party provided or owned) while the rest of the team works remotely from other shared office spaces. This model is ideal for those who prefer a blend of core offices and satellite offices.
Combines the benefits of a dedicated office space for core operations and a distributed workforce across different cities.
Allows for face-to-face interaction in the base location while leveraging talent across a broader geographic area.
Requires investment in setting up and maintaining the base location.
Coordination between different locations can be challenging.
Team cohesiveness may be impacted to some extent.
Addressing Challenges with the Partnership Model
MYCPE ONE understands that managing multiple locations, sourcing talent, and ensuring team cohesiveness can be daunting. Through the MYCPE One Captives Ecosystem, they offer solutions to effectively address these challenges.
1. Ready Access to Offices Across Different Geographical Locations: MYCPE ONE's established offices across various cities relieve firms from the hassle of managing resources and locations. Their HR tech platform, MYCPE ONE Personio, provides seamless access to real-time insights into work productivity, invoicing, task reports, review notes, and more, ensuring smooth and efficient operations.
2. Socio-Professional Collaborative Ecosystem: Each MYCPE ONE office hosts team members working with different accounting firms, offering a broad perspective and diverse exposure beyond a single firm. This setup fosters a professional environment of social interactions and connections, distinct from a work-from-home arrangement.
3. Enhancing Team Bonds Through Retreats: To build and strengthen relationships within teams from the same firm, MYCPE ONE organizes retreats based on the firm's needs, either quarterly or semi-annually. These events provide opportunities for in-person interactions and deeper connections. Retreats can be hosted at their corporate headquarters in Ahmedabad or other suitable locations with access to conference facilities, auditoriums, and team-building activity spots.
4. Sourcing Talent Across Diverse Locations: While larger cities may have a higher concentration of experienced talent, tier 2 and 3 cities are quickly catching up. MYCPE ONE has established offices in key locations such as Hyderabad, Bangalore, Kolkata, and Ahmedabad, ensuring effective sourcing of experienced talent when required.
5. Establishing Core and Satellite Offices: MYCPE ONE can assist in setting up one or two primary hubs as Core Offices, where 30-40% of the workforce, including senior talent, can be based. The remaining 50-60% of the team can be diversified across various secondary locations, utilizing MYCPE ONE's network of offices across multiple cities. This approach allows for a balanced distribution of talent and resources, ensuring operational efficiency and reduced risk of attrition.
MYCPE ONE recommends starting with a No Office Distributed Team Model to minimize upfront risk and investment. As offshoring operations grow, more partners become accustomed to working with offshore staff, and the offshore talent pool expands, firms can transition to a hybrid model. Eventually, depending on the firm's internal philosophy, needs, and long-term roadmap, they may choose to fully move to an owned office model or continue with the hybrid approach, all while leveraging the support and partnership of MYCPE ONE.
The MYCPE ONE Captives Ecosystem approach addresses the challenges of all three models and maximizes their benefits. Our No Office Distributed Team Model allows firms to harness the positives of a no-office or hybrid model while simultaneously bringing in the advantages of owned office and hybrid office models, providing a balanced, effective solution that aligns with growth and operational needs.
Present in 19 cities across India and the Philippines
3500+ seat current capacity globally
40+ offices
500K square feet of office space occupied
MYCPE ONE continues to expand its presence and capacity to meet the growing needs of CPA and accounting firms looking to establish offshore operations in India. We are planning for:
30+ Cities in India and the Philippines
5000+ Seats – Expansion in 1 – 2 Years
10,000+ Seats – Expansion in 4 – 5 Years
2 New Countries to be Added (South Africa and Mexico or Columbia)
1 million Sq Ft Office Space
We, MYCPE ONE are continuing to expand our global presence and staffing capacity with an aim to meet the growing needs of CPA and accounting firms who are wishing to establish their captive centres (offshore operations) in India.
It is really crucial to consider the right office model for CPA and accounting firms who are looking to establish and expand their offshore operations in India. Each of the three models discussed above – No office, Owned office, and Hybrid has their own pros and cons, along with several challenges.
The MYCPE ONE Captives is a comprehensive solution that helps firms get the benefits of each model while minimizing the associated risks. It is advisable to start with a distribute team model and then later transition to a hybrid or owned office model as soon as operations start growing. With this, firms can minimize the risks of initial investment and at the same time is able to maintain the flexibility to scale. The support provided by MYCPE ONE, including access to diverse talent pools, collaborative ecosystems, and team-building initiatives, addresses many of the common challenges associated with offshore operations.
Ultimately, the choice of office setup model should align with a firm's long-term goals, operational requirements, and growth projections. With the right partner and a well-thought-out strategy, CPA and accounting firms can successfully establish and expand their offshore operations in India, gaining access to skilled talent and achieving operational efficiencies that drive firm growth.
Shawn Parikh is the CEO and Co-Founder of MYCPE ONE. A Chartered Accountant by qualification, he has over 15 years of experience of being a problem solver for small to mid-size firms and over time he has given consultation to thousands of CPAs, accountants and tax pros. Shawn has always been a big believer and advocate of social enterprises and small accounting firms & businesses. He consults and speaks on several topics ranging from Building Remote Team - Remote Working, Offshore Staffing, strategic planning, Scalability of Accounting Practice, cloud accounting, practice management, LinkedIn marketing, etc.
Shawn Parikh
