Punjabi (Pw)MC Mark Johnson Offshores More Australian PwC Jobs

At a time when major international corporate firms are creating a presence in Australia, it is something of an omen that international accounting heavyweight PricewaterhouseCoopers is rumoured to be actively seeking to move some of its work to affiliate offices in locations with favourable exchange rates.

The end result of this is one of two things:

1. the client gets charged less for the same work; or
2. the PwC partnership forces the client to pay the same for work that in fact costs less and retains extra profit.

Our guess is that the latter is what is happenening.

Thanks very much to the anonymous PwC spy who sent us the following comments:

Howdy Firmspy. Thought you might be interested in this. I have received word that PwC is looking to target a minimum of 20% of personal tax returns (ie Private Clients) to send overseas to India for outsourcing by the Indian firm in FY2011. So not only are they sending Australian internal jobs to India, but substantial client work as well. They have already been sending some audit work to India for some time through Indian contractors, but this will directly affect staff numbers mid to long term. In all PwC Private Clients areas, graduate recruitment numbers have been reduced by 20% with the number likely to increase if India take on more outsourced work. This is largely the work of Mark Johnson since he took over as CEO in July 2008 and his so-called “operational efficiencies”. Sounds like he wants to be Australia’s answer to Jack Welch to me. Bring back Tony Harrington!

Here at the Firm Spy, we think all potential PwC graduates should be wary of this rumoured development. If there is continued off-shoring of jobs to India, will there be enough future work for you? Will you be jobless?

But more than that, all PwC clients should be very wary of the rumour. Not that we wish to generalise, but if the rumours are true, are we about to see the emergence in accounting circles of something akin to manufacturing sweatshops in which offshore clients seize upon favourable trade terms? Would you feel confident that you’re receiving your maximum personal tax return if your accountant is, say, shoulder to shoulder with sweaty workers, whilst being overseen by a whip-cracking corporate infidel? How about if Indian musical DJ icon Punjabi MC was blaring in the background?

Are you worried that your job can readily be performed at some Indian outpost for a fraction of what it costs for you to do it?

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