OFFSHORE OUTSOURCING OF ACCOUNTING AS A RESULT OF GLOBALIZATION

Globalization is now considered a key factor of the further development of the world economy. One of the practical phenomena of globalization is outsourcing. Outsourcing means that a company uses third parties to perform non-core business activities. Through outsourcing, a company can access the state of the art in all of its business activities without having to master each one internally. Offshore outsourcing is the process of relocating non-core business activities to countries with lower labour costs but equal expertise. Offshore outsourcing is mainly used by companies with global operations. The outsourcing services are most often used in the area of information technology, law and accounting. The accounting activities are now increasingly the subject of outsourcing. The main reason is that accounting is an activity mandatory for each business entity, but it is rarely related to the core business activities performed by the business entity. Offshore outsourcing of various accounting activities is becoming an increasingly attractive option for many companies as a means of gaining access to scarce skills, cutting costs and obtaining competitiveness. The paper's aim is to describe the process of offshore accounting outsourcing with emphasis on its benefits and risks which have been studied in a particular company.