India is set to face a shortage of practising chartered accountants as most of them find working in more glamourous industry. The growth of business process outsourcing (BPO) firms in accounting, finance and investment domains will only make the shortage more acute.
The growth of business process outsourcing in accounting and finance is growing at large pace, and the demand to pull in more CAs will make worse worse and will further result in the shortage of chartered accountants.
The finance and accounting outsourcing was expected to touch $24.6 billion globally by 2010. In 2006, 30 per cent of all FAO work outsourced came to India, creating a demand for chartered accountants.
This issue was further enlightned In the recently one-day seminar on BPO organised by Southern India Regional Council of The Institute of Chartered Accountants of India in Chennai on Saturday. Addressing the concern the Director HR of Infosys Technologies Mr.TV Mohandas Pai said "There are more opportunities in India than there are qualified people. The demand for CAs is particularly high.
According to one estimate, India would need 50,000 Chartered Accountants by the end of the year 2010. Till 2005, about 5000-6000 CAs were graduating every year. Though this number has gone up by 9000-10000 in the last couple of years.
Statistics laid by a member of ICAI reads there were 135,000 CAs registered with the institute, in which about 55,000 of them are practising in India, 12,000 outside India and the balance rest employed elsewhere within the country.
Based on the above figures Mr.Pai say that this numbers is not enough and has to go up in order to meet the potential demand," he further adds that BPO sector as a whole is set to employ 5.45 lakh people to generate revenues of $8.3 billion in 2007. This is against 4.15 lakh people in 2006, generating $ 6.3 billion of revenues, and 3.16 lakh people in 2005 generating 4.6 billion of revenues.
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