Sarbanes-Oxley has few corporate fans. A notable exception: offshore providers of accounting services.
U.S. accounting firms are having trouble keeping up as their corporate clients face increasingly heavy regulatory loads, especially those associated with Sarbanes-Oxley compliance.
A solution being adopted by some, according to this Business Standard article, is boosting their workforces with Indian employees -- both onshore and offshore.
The article cites a joint venture deal under which U.S.-based Control Solutions will outsource Sarbox work to India's Enabilizer. Enabilizer's CEO predicts that up to 60 percent of FI (student) visas to the U.S. in coming years will go to those pursuing studies in finance and accounting.
Steep increases in pay for accounting professionals make it an area, naturally, in which companies are especially eager to capitalize on labor arbitrage.
Though the number of U.S. students studying accounting rose 19 percent from 2000 to 2004, according to the American Institute of Certified Public Acocuntants, it hasn't been enough to meet regulation-driven demand. Making things worse, droves of baby boomer accountants are also retiring.