US accounting firms turn to India to alleviate talent crunch

US accounting firms, including RSM US, Moss Adams, Bain Capital-backed Sikich and Apax Partners-backed CohnReznick, are expanding their operations in India to tackle an acute shortage of accountants at home.

- SAI ISHWARBHARATH B

The surge in recruitment has started boosting enrolment in specialised commerce courses in India, and could establish Asia's No. 3 economy as a hub for accounting talent, reminiscent of the 90s outsourcing boom that revolutionised the tech industry.

"This could be the breakthrough moment for public accounting firms in India," Balaji Iyer, managing partner at Moss Adams India, told Reuters. "Right now, the US is facing a significant and growing shortage of certified public accountants, a trend that will only intensify in the coming years."

About 1.78 million people were working as accountants in the United States in 2024, about 10% fewer than in 2019, according to US Bureau of Labor Statistics data, as many seasoned accountants retired without a reliable pipeline of qualified replacements.

The American Institute of CPAs, the national body that conducts and grades qualifying exams and sets auditing standards for the profession, admitted a "talent pipeline issue" as it commissioned an independent study last year.

About half its members are over the age of 50.