The accounting profession in the United States is facing an unprecedented talent drought, and American firms have found their solution halfway across the world. Major U.S. accounting companies are rapidly expanding their operations in India, potentially triggering an outsourcing revolution that mirrors the technology boom of the 1990s.
The Shortage That’s Reshaping an Industry
The numbers tell a stark story. By 2024, the United States employed approximately 1.78 million accountants—a dramatic 10 percent decline from 2019 levels. This workforce contraction stems from a troubling pattern: experienced accountants are retiring in droves, while the pipeline of qualified replacements has run disturbingly dry.
The crisis has become so acute that the American Institute of CPAs, the profession’s national governing body, commissioned an independent study to examine what it acknowledges as a critical “talent pipeline issue.” The findings were sobering—half of AICPA’s members are now over 50, and the shortage is reverberating throughout corporate America. Even major corporations like toymaker Mattel have reported delays in annual reports and regulatory filings due to the scarcity of qualified accounting professionals.
The accounting profession’s struggle to attract fresh talent isn’t mysterious. The field demands grueling hours, offers compensation below many other finance careers, and effectively requires a fifth year of university education to obtain CPA licensing. For today’s ambitious graduates, these conditions make accounting a tough sell.
“Fewer students are majoring in accounting, partly because the field is seen as less exciting than tech or finance, and automation has added uncertainty,” explains Rebecca Hann, associate dean of research at University of Maryland’s Robert H. Smith School of Business. The perception problem is compounded by legitimate concerns about artificial intelligence and automation potentially disrupting traditional accounting roles.
The Strategic Pivot to India
Leading the charge toward India are firms like RSM US, which plans to more than double its Indian workforce to 5,000 employees by 2027. Similarly, Bain Capital-backed Sikich and Apax Partners-backed CohnReznick are aggressively building their presence in the South Asian nation. Even accounting giants Moss Adams have recognized what managing partner Balaji Iyer calls a “breakthrough moment for public accounting firms in India.”
This expansion isn’t simply about filling vacancies one-for-one. As Bobby Achettu, principal at Sikich, explains, “It’s less about filling roles one for one and more about transforming how we deliver services, using both highly skilled talent and advanced technology to meet evolving client demands.” Sikich’s Indian team already represents 10 percent of its global workforce with 200 professionals.
The Big Four accounting firms—Deloitte, EY, KPMG, and PwC—have been even more aggressive, collectively employing between 140,000 and 160,000 people in their Indian global capability centers as of 2024.
A New Chapter in India’s Outsourcing Story
This accounting migration echoes India’s transformation into a global technology powerhouse over the past two decades. Just as Microsoft, Walmart, and JPMorgan Chase established operations to access India’s engineering talent, accounting firms are now tapping into the country’s vast pool of commerce graduates.
The impact is already visible on Indian campuses. Christ University in Bengaluru received approximately 3,000 applications for just 120 spots in its Bachelor of Commerce (International Finance) program. Director Biju Toms notes that recruitment has expanded beyond the Big Four to include mid-sized firms like EisnerAmper and BDO, with some companies even hiring directly from campuses and sponsoring CPA courses for promising candidates.
“There is always the need for trained talent with industry exposure, and cost arbitrage into play, when you operate from India,” Toms observes. “So, similar to outsourcing in tech, accounting is a new area that is really opening up.”
With the U.S. Bureau of Labor projecting 6 percent growth in accounting and auditing positions through 2033—faster than the average for all occupations—India’s role as an accounting hub appears poised for sustained expansion. What began as a crisis response may well establish Asia’s third-largest economy as the world’s premier destination for accounting talent.
This article is based on reporting by Sai Ishwarbharath B, published on April 29, 2025, in Reuters. For the original article, visit Reuters.