Thriving BPO industry lead to shortage of CAs

Chennai: The growth of business process outsourcing (BPO) firms in accounting, finance and investment domains is exacerbate the shortage of chartered accountants according to director HR of Infosys Technologies TV Mohandas Pai.

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.

Pai speaking at a one-day seminar on BPO organised by Southern India Regional Council of The Institute of Chartered Accountants of India in Chennai on Saturday said there were more opportunities in India than there are qualified people and the demand for CAs is particularly high.

He said that according to one estimate, India would need 50,000 CAs a year by the end of 2010. Till 2005, about 5000-6000 CAs were graduating every year. This number has gone up to 9000-10000 in the last couple of years.

Pai said the number has to be much higher to meet the potential demand and added that the 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.