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KPMG eyes auditing services, to double outsourcing
Raghuvir Badrinath in Bangalore | May 14, 2008 12:56 IST
KPMG, the $20-billion global advisory and audit firm, is set to broaden its basket of operations in India as it sees annual growth of 40 per cent in the coming years as well.
Michael Wareing, international chief executive officer of KPMG, in an interview with Business Standard, said: "The Indian operations have been delivering successfully. The education system and work ethics in India are particularly high and positive. In addition to offering direct services to clients, we see enormous opportunities to leverage the resources India offers."
At present, a significant chunk of KPMG's global client service support is being outsourced to Outsource Partners International, a strategic partner, in India. Going forward, the outsourcing volumes are expected to double.
"In fact, our own half-yearly results for our global operations were prepared in Bangalore," Wareing said. In addition to outsourcing these knowledge processes' from its own stable and clients, KPMG has contracted a major portion of its IT applications to two Bangalore-based software services firm.
KPMG is witnessing a significant growth in the tax and advisory practices business and is eyeing the mid-market mergers and acquisitions space. According to Indian regulations, non-Indian firms cannot offer auditing services. KPMG operates in this space through BSR & Co, a member firm, which adopts the same practices as KPMG.
KPMG is keen to offer its direct services in India as and when regulations ease, especially in India post the upcoming WTO talks at Doha. "It's a national regulatory issue. We are keen to offer our direct services to clients here and we are in talks with our peers to make that clear," he noted.
KPMG is also actively scouting the Indian market place for 'bolt-on' acquisitions to widen its presence. "It's a people intensive business. We will look at organisations and at people who can increase the depth of our practices to deliver more value to our clients," Wareing noted.