Why Leading Firms are Rethinking Their Operating Model

By Stephen Hogg

Getting the offshoring vs outsourcing resourcing model right is critical for a firm’s overall strategy and will define Australian accounting firms in the next decade.

Australian accounting firms are operating in an environment shaped by long-term workforce constraints rather than short-term cycles. According to Jobs and Skills Australia (JSA), accountants remain one of the most in-demand professional occupations, with employment growth continuing despite broader economic uncertainty. Chartered Accountants Australia and New Zealand (CA ANZ) surveys consistently show difficulty in filling core accounting roles, with vacancy fill rates well below acceptable levels. At the same time, Accountants Daily has highlighted a sharp decline in accounting graduate pipelines, placing further strain on future supply.

• Accountants remain a high-demand occupation
  Employment grew by 6% year-on-year to late 2025, despite broader economic uncertainty
• Vacancy fill rates are below sustainable levels
  Fewer than 65% of advertised accounting roles are filled within expected timeframes
• Graduate pipeline under pressure
  Accounting enrolments into key pathways have declined sharply in recent years, reducing future supply
• Tight labour market expected to persist
  Jobs and Skills Australia and ABS data indicate that workforce tightness is likely to continue
• Structural, not cyclical, challenge
  Talent constraints are expected to persist through 2028–2030, not resolve in the short term

For firm owners and partners, talent shortages now directly influence operational decisions and long-term firm resilience. In practice, this means:

• Longer and less predictable recruitment cycles
  Roles take months to fill, with a significant time and cost investment.
• Recurring capacity stress during peak periods
  BAS, EOFY and SMSF cycles place disproportionate strain on teams, heighten the risk of errors, missed deadlines and staff burnout.
• Partner time pulled into delivery and review
  Senior leaders spend more time reviewing work, managing bottlenecks, and resolving resourcing issues, reducing time available for advisory & client relationships.
• Limited ability to scale sustainably
  Growth becomes constrained not by demand but by delivery capacity.

As workforce constraints persist, firms are redesigning the flow of work through their practices. A clear distinction has emerged between outsourcing and offshoring, and firms must be deliberate about the right combination within their overall strategy.

Outsourcing is typically task-based and transactional, making it well suited for overflow requirements and recurring compliance work such as SMSF accounting. It does not require fixed operating expenses, as firms pay on demand for the services required. This model provides flexibility and is particularly effective during seasonal or deadline-driven peaks when additional capacity is needed without long-term commitment.

Offshoring involves building a dedicated offshore delivery team(s) that operates as an extension of the firm. Team members are embedded within the firm’s systems, processes and workflows, becoming part of its broader ecosystem. Over time, this model can evolve to support higher-value responsibilities and even client-facing work with appropriate oversight. Successful firms formalise the approach by appointing an internal offshoring champion(s), to ensure integration, accountability and consistent performance alignment.

Leading firms deploy offshore teams for services including bookkeeping, business services, SMSF and paraplanning, while onshore teams focus on advisory, leadership and client relationships.

In an environment defined by sustained talent shortages and increasing delivery risk, firms are engaging Solutions Centric as a Strategic Resourcing Partner.

For progressive firms, offshoring and outsourcing is a strategic capability decision, not a temporary solution. Solutions Centric integrates as a trusted extension of the internal team, strengthening stability and scalability.

Solutions Centric supports firms to:

• Design a fit-for-purpose offshore delivery layer
  Aligned to Australian compliance standards, regulatory expectations, and firm-specific governance frameworks, operating as an extension of the onshore team.
• Protect quality through ISO-aligned processes (ISO 9001)
  With structured SOPs, defined review hierarchies, service levels, and continuous improvement practices consistent with ISO 9001 quality management standards.
• Ensure data security and confidentiality (ISO/IEC 27001 – ISMS)
  Through strong access controls, role-based permissions, audit trails, NDAs, and information security practices aligned to ISO/IEC 27001.
• Maintain control and visibility at scale
  Via reporting dashboards, regular check-ins, and performance oversight comparable to managing in-house staff.
• Create flexible, scalable capacity through peak cycles
  Supporting BAS, EOFY, SMSF, and financial planning workloads without increasing onshore hiring risk.

As talent constraints persist through 2026 to 2030, firms that deliberately build the right combination of resourcing models and integrate offshoring with complementary capacity solutions will be better placed to protect margins, unlock advisory capacity, reduce delivery risk, and build resilient operating models.