Research
AI and outsourced accounting: what the evidence says
We believe routine accounting work is starting to move from offshore teams to AI. We are an AI service, so we have an interest in that view. That is why this page sets out published news and research on both sides, with links to the original sources, so you can read them and decide for yourself.
Our view in one line. The move from offshore outsourcing to AI is only beginning. It has not happened yet. The evidence below shows the offshore industries are still growing, but hiring is slowing, routine work is being automated, and industry forecasts have been cut.
Signs of change
What the evidence shows is changing
The outsourcing industry has lowered its 2028 targets
The IT and Business Process Association of the Philippines reviewed its six-year roadmap. It lowered its 2028 revenue target from US$59 billion to between US$43.3 and US$50.5 billion. It lowered its jobs target from 2.5 million to between 1.85 and 2.14 million. AI was one of the risks it named, along with changing buyer behaviour and global competition.
Revenue is growing faster than jobs
For 2026, the same industry body forecast revenue to grow 5% to US$42.3 billion, while jobs grow 2.6% to 1.94 million. More work is being delivered with fewer additional people.
The IMF found outsourcing jobs among the most exposed to AI
An International Monetary Fund working paper found about one-third of Philippine occupations are highly exposed to AI. The outsourcing sector had the highest share of jobs that are highly exposed and less likely to be supported by AI. Exposure is a measure of risk, not a forecast of job losses.
Entry-level hiring is falling at IT firms
A survey of 651 Indian IT firms found 55% reported fewer entry-level jobs over the previous two years. Entry-level roles usually do the routine tasks that AI can now handle. The World Bank cited this survey in its October 2026 report on India and AI.
The largest outsourcers have almost stopped adding staff
India's four largest IT outsourcers, TCS, Infosys, Wipro and HCL, added fewer than 4,000 staff between them over a year, which is unusually slow. All four told investors they are using more AI to deliver work.
Offshore accounting teams report routine work being automated
Leaders of offshore accounting teams in India say repetitive work is being automated faster than expected. One team reported data entry that once took hours now takes minutes. Another expects a project that needs five people today to need three within three years.
AI tools are now preparing full tax returns
AI accounting company Basis raised US$100 million in 2026. It says its AI completed a US partnership tax return from start to finish, work that typically takes a junior or offshore team 10 to 15 hours. A person still reviewed the result.
Investors are questioning the outsourcing model
The BBC reported that India's outsourcing industry is worth around US$300 billion and that shares in major Indian IT firms fell sharply in early 2026, after new AI tools that automate legal, compliance and data tasks were released.
The other side
Evidence that offshore outsourcing is holding up
A fair picture needs these too.
No sign yet of large-scale job losses
The same ICRIER survey that found falling entry-level hiring found no evidence of large-scale AI job losses in India's IT sector. Total employment is still growing.
India is moving into higher-value work
An ING Bank economist found India's outsourcing industry is showing little sign of losing ground to AI, because it is moving into services that are harder to automate. Business services such as finance and accounting have more than doubled their share of India's economy since before the pandemic.
Offshore accounting firms are still hiring
Leaders at offshore accounting teams in India say AI will not end the offshore model. One firm reported tripling its India hiring. They expect offshore staff to move into review and specialist work.
"AI plus offshoring", not AI instead of offshoring
A consultant to accounting firms argues AI will make offshore teams more effective by solving time-zone and communication problems, rather than replacing them.
Not every job cut is caused by AI
India's largest IT company, TCS, cut about 12,000 jobs in 2025. Reports linked this to AI, but TCS said the cuts were due to skill mismatches, not AI.
Exposure to AI is not the same as job loss
The World Bank found 22% of jobs in India are highly exposed to AI, and stressed this is not a job-loss forecast. In many of these roles AI is more likely to help workers than replace them.
About this page
How we put it together
- We only use news publishers, research bodies and official reports. We left out marketing blogs and unverified websites.
- Every item links to the original source. We summarise in our own words; please read the source for the full context.
- Figures are as reported by each publisher at the time. We have not changed them.
- We include evidence that does not support our view, so you can weigh both sides.
- We review this page from time to time. Sources checked October 2026.
Please note. This page is general information only. It is not financial, business or professional advice. AnnualsAI is not connected to, or endorsed by, any of the publishers or organisations named.
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