BDO USA to double offshore workforce amid young accountant shortfall
CHICAGO, UNITED STATES — Accounting firm BDO USA plans to double its offshore workforce following a significant decline in the number of United States (U.S.) graduates pursuing careers in accounting.
According to CEO Wayne Berson, thousands of jobs will be added overseas, mainly in India. This strategy aims to offset a talent shortage impacting the U.S. audit and tax sectors.
BDO USA, employing around 12,000 people, plans to staff its offshore joint venture, “BDO Rise,” with 5,000 employees within five years.
BDO Rise, which already boasts 2,000 staff members in India, recently added around 100 jobs in South Africa. The firm intends to expand further in both nations.
Berson acknowledged the severe talent shortage in the field. He said, “While it would be nice to just hire domestically, you have got to be open to the notion that maybe someone else has something that you don’t have, that you can buy.”
Industry leaders are struggling to understand the drop in interest in the accounting profession, especially as they are faced with replacing a wave of retiring baby boomers.
The U.S. Bureau of Labor Statistics forecasts the need for 136,400 new accountants and auditors annually over the next decade. However, the U.S. never had more than 80,000 graduates with bachelor’s or master’s degrees in accounting per year.
Other big firms, including the Big Four — Deloitte, PwC, EY, and KPMG — have already set up significant offshore presences, particularly in India. Midsize and smaller firms are also following this offshoring trend due to a tightening labor market for trained accountants.
Berson suggested that young people seem to be more inclined towards consultancy roles rather than the stable but less instantly profitable tax and audit professions.
Despite the challenges, BDO USA has thrived under Berson’s leadership. Over the past decade, the firm’s annual revenue has grown from $618 million to approximately $3 billion. Berson forecasts revenues of $5 billion in three to four years, partly by expanding the consulting side of the business.
