Introduction
As businesses strive to optimise costs and maximise efficiency, outsourcing has become a popular strategy. For accounting and finance roles, understanding the cost implications of hiring locally versus outsourcing to countries like Pakistan is crucial. This blog explores the salary differences and overall cost-benefit analysis between these two options.
Salaries in Pakistan
Average Salaries (Based on $9/hour):
- Bookkeepers: $18,720 annually
- Accounts Payable/Receivable Specialists: $18,720 annually
- Payroll Specialists: $18,720 annually
Cost Savings:
- Lower salaries due to differences in the cost of living.
- Reduced overhead costs as employees work remotely.
Example: A US-based company outsourced bookkeeping to Pakistan and saved over 60% on salary expenses while receiving high-quality services.
Salaries in Canada
Average Salaries:
- Bookkeepers: CAD 45,000 – CAD 60,000 annually
- Accounts Payable/Receivable Specialists: CAD 50,000 – CAD 70,000 annually
- Payroll Specialists: CAD 55,000 – CAD 75,000 annually
Additional Costs:6
- Recruitment: CAD 5,000 – CAD 10,000 per hire
- Benefits: CAD 10,000 – CAD 15,000 annually per employee
- Overheads: CAD 5,000 – CAD 8,000 annually
Cost Comparison
Role | Pakistan (Annual) | Canada (Annual) | Savings (%) |
Bookkeeper | $18,720 | CAD 50,000 | ~65% |
Accounts Specialist | $18,720 | CAD 60,000 | ~68% |
Payroll Specialist | $18,720 | CAD 65,000 | ~71% |
Advantages and Disadvantages
Outsourcing to Pakistan
Advantages:
- Significant cost savings.
- Access to skilled talent in accounting and finance.
- 24/7 support due to time zone differences.
Disadvantages:
- Potential communication challenges.
- Data security concerns if not managed properly.
Hiring in Canada
Advantages:
- Strong cultural and language alignment.
- Easier collaboration due to local presence.
- Greater control over processes.
Disadvantages:
- High salary and overhead costs.
- Limited talent pool in specific regions.
Conclusion
Outsourcing accounting roles to Pakistan offers a compelling cost advantage while maintaining access to skilled professionals. However, hiring locally in Canada ensures better cultural alignment and communication. Businesses must weigh the pros and cons to determine the best fit for their needs. Ready to streamline your finances and reduce costs? Contact Winnors Ltd today at a.afzal@winnors.co.uk or call 01613940277 to hire top-tier accountants and bookkeepers for full-time, part-time, or project-based needs, and experience the benefits of expert remote staffing.
