The move, initially reported in February, is expected to save the firm $17 million in annual costs
KPMG Australia is offshoring 200 executive assistant roles in a cost-cutting measure that is expected to save the consulting giant $17 million annually, according to reports.
KPMG has hired Indian giant Coforge for the move, which will provide 200 executive assistants who are based in the Philippines, the Australian Financial Review reported.
The news confirmed initial reports in February that KPMG is offshoring 200 EA roles to the Philippines, representing a two per cent cut of the company's almost 9,000-strong workforce.
According to the AFR, the decision is expected to save the organisation $17 million annually in costs even after the expense of engaging Coforge.
Affected employees were offered a chance for potential redeployment or to accept a redundancy package that includes retraining and other assistance.
Offshoring employees
Offshoring is a growing practice among consulting giants in Australia, including PwC, EY, and Deloitte. These firms, however, vary in implementation when it comes to outsourcing.
In KPMG's case, the AFR reported that the offshore EAs are expected to carry out work including calendar management, travel booking, email triage, and client communication.
They will work Australian hours, and they will be overseen by a supervisor who will escalate matters back to the firm and report regularly.
"In transition to a hybrid onshore and offshore EA support model, a key design principle was that we meet all contractual, legal and regulatory requirements, including those related to data security and government work," Eileen Hoggett, KPMG Australia's chief operating officer, told the AFR.
"If the work needs to be done in Australia, it will be done in Australia."
The offshoring move comes as the practice gains steady momentum in Australia over the past decade, according to KDCI Outsourcing.
"Companies across Australia are increasingly leveraging both offshoring and nearshoring to support functions such as customer experience, IT, finance, engineering, and shared services," it said in a blog post in January.
"From finance and healthcare to real estate, technology, creative, and retail sectors, outsourcing now plays a strategic role in scaling teams, filling skill gaps, and supporting rapid innovation across core and non-core business functions."
