There is a growth trend towards the outsourcing of accounting activities. The drivers of outsourcing emanate from organisational initiatives, improvement focus, financial and cost objectives or growth objectives. Despite the increasing practical significance of this phenomenon, the academic literature is limited to a hand full of studies concerned with the delegation of accounting functions.
Outsourcing is an increasingly important initiative being pursued by organizations to improve efficiency (Vining and Glober man, 1999). To be able to survive and be profitable in current globalization era, companies tend to use outsourcing in larger extent (Brannemo, 2006). In today’s business environment, companies considered outsourcing to empower business focus, mitigate risks,build sustainable competitive advantage, extend technical capabilities and free resources for core business purposes (Bartell, 1998). Some companies out source their core activities on the value chain extensively and other companies in contrast are extensively outsourcing. Click here to read more…
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