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The accountancy profession is evolving rapidly—and mid-tier firms are right at the heart of the transformation. Amid shifting client expectations, advancing technology, and increased regulatory complexity, one issue continues to dominate boardroom conversations: Talent.

Attracting and retaining qualified staff has become the number one challenge for mid-tier firms. According to the ICAEW’s 2024 “Evolution of Mid-Tier Accountancy Firms” report, 70% of respondents named talent issues as their top concern, with the shortage of qualified professionals standing out as particularly acute.

So, how are firms responding?

Offshoring: A Strategic Response to the Talent Challenge

Faced with a fiercely competitive job market and evolving client needs, many mid-tier firms are strategically leveraging offshoring and outsourcing to build capacity, improve efficiency, and stay competitive.

The ICAEW report found that 86% of firms using offshoring increased their offshore chargeable hours over the past three years, and 71% anticipate further increases by 2027.

These initiatives are most commonly applied to core service lines like accounting, audit, tax, and payroll — areas where workflow can be streamlined and standardized without sacrificing quality.  Yes, it includes auditing which is believed to be more client-facing and complex work that is harder to deliver through offshore teams.  The ICAEW report 49% of the respondents who offered audit services were already offshoring some of their audit work, and a further 11% plan to offshore audit functions within the next three years.

Balancing Efficiency with the Personal Touch

Offshoring isn’t without its tensions. Some firms noted the importance of “maintaining a personal service” for clients, and ensuring offshore teams are seamlessly integrated into their service model is critical.

The firms making this work are those who:

• Have robust quality control frameworks
• Invest in training and communication tools for distributed teams
• View offshore partners as an extension of their core business—not a separate entity

It’s about building blended teams, not creating silos.

Looking Ahead: Strategic Capacity Building

Offshoring is no longer a stopgap solution. It’s becoming an integral part of how mid-tier firms build capacity and resilience. Whether it’s supporting rapid growth, navigating succession planning, or staying agile in the face of client demand, the model is evolving from tactical to strategic.

As one ICAEW survey respondent put it:

“There is an opportunity to invest in RPA and AI to improve business efficiency and free up staff resources to offer client-facing services.”

Offshoring, paired with technology and smart people strategies, allows mid-tier and small firms to not only survive—but thrive—in a time of change.

It isn’t only about offloading — it’s about unlocking. Unlocking capacity, growth and the full potential of their people and services.

Is your firm exploring offshoring to combat talent shortages? I’d love to hear your experiences in the comments.

Who we are

Growize are your strategic offshore growth partner. We help CPA firms:

• Build dedicated offshore audit teams trained in IFRS, US GAAP, and PCAOB/ISAs
• Tap into onshore support options to cover urgent shortfalls
• Set up fully managed captive offices in India for long-term control
• Deliver practical audit training that bridges knowledge gaps and builds confidence

Discover how this works for you and help you thrive: www.growize.co.uk

Source: All statistics and insights are drawn from the ICAEW’s 2024 research report “Evolution of mid-tier accountancy firms”.