Definitions: Outsourcing, Offshoring, BPO and Managed Staffing
- Outsourcing vs offshoring: outsourcing hands a function to another company; offshoring moves the work to another country. They can be combined, and the people can still work only for you, inside your systems.
- BPO vs dedicated team: a BPO processes work in its own systems with whoever is available. A dedicated team works only for you, inside your systems, with the same people on your files.
- Recruitment vs managed staffing: a recruiter places a candidate and steps away. A managed provider employs the professional and keeps managing payroll, HR, compliance, equipment, performance and replacement.
Four Ways to Staff Offshore Finance Work
| Model | Who employs | Who directs the work | Who replaces a leaver | Cost structure |
|---|---|---|---|---|
| Freelancer | Nobody: a contractor | You | You, by hiring again | Hourly or per task; management is yours |
| Recruitment agency | You, or a payroll provider | You | You, often through a new placement | Placement fee, then salary and employment costs |
| BPO | The BPO | The BPO, in its own systems | The BPO; no fixed person on your files | Per transaction or volume |
| Managed provider (OFP) | OFP | OFP's senior accountant (Managed Finance Team) or you (Dedicated Finance Professional) | OFP: replacement is included | Monthly fee per dedicated professional, employment and management included |
What each structure costs per role is in our offshore accountant cost guide.
Defining the Engagement Spectrum
Offshoring is not one thing. The question is who directs the day-to-day work: you, or a senior accountant on our side. Choosing the right answer is critical to the success of your extended team. Recruitment, payroll, HR, compliance, equipment and replacement are handled by OFP in both models.
1. Dedicated Finance Professional: you direct the work
Best for: Firms with their own finance leadership that want capacity and keep final approval.
In this model, OFP provides a dedicated professional who works inside your systems and daily workflow. You manage priorities, workflows and reviews; the ownership of the output stays with you.
- Pros: Full control, high visibility, lower cost than a managed team.
- Cons: Requires onshore management bandwidth.
2. Managed Finance Team: you agree the work, we deliver it
Best for: Firms and businesses that want the outcome without managing people. This is how most clients work with us.
Here, a senior accountant is your single point of contact and owns quality, continuity and coordination. OFP staffs, runs and covers the team behind them. You set scope, deadlines and reporting expectations.
- Pros: Minimal management overhead, guaranteed outcomes, scalable.
- Cons: Higher premium, less direct control over individual tasks.
Summary Table
| Feature | Dedicated Professional | Managed Finance Team |
|---|---|---|
| Management Req. | Medium | Minimal |
| Cost | $$ | $$$ |
| Scalability | Linear | Exponential |
Strategy Breakdown: Directing the Work vs. a Managed Team
Deciding between these two comes down to your "Cost of Management." If you have a finance lead with time to direct and review, a dedicated professional is the right fit. If you want the outcome without managing people, the managed team is the answer.
| Scenario | Dedicated Professional | Managed Finance Team |
|---|---|---|
| Staff Member is Sick | Work stops. You wait. | Your senior accountant reassigns work within the team. Deadlines met. |
| New Task Training | You record Loom videos and explain it. | You brief your senior accountant once. They verify the SOP and train the team. |
| Quality Control | You review every line item. | Your senior accountant reviews every file. You review the summary exception report. |