In this article, we caution against fully outsourcing corporate tax functions to Big 4 accounting firms, despite their renewed push for these services. We highlight two key reasons why such outsourcing arrangements often fail:
We explain that while the Big 4 are promoting outsourcing as a novel solution driven by pandemic challenges, it's largely an attempt to create new revenue streams as traditional audit work becomes more automated. We argue that outsourcing is rarely in the best interest of companies or shareholders.
Instead, we recommend companies optimize their tax operations by utilizing the "Talent Economy" - accessing specialized interim tax professionals for specific projects and needs. This approach provides more flexibility, cost-effectiveness, and retention of in-house expertise compared to full outsourcing.
Overall, we advise tax leaders to be wary of outsourcing pitches and consider alternative solutions to manage their tax functions efficiently.
