“No way.” “It’s not allowed per the standards.” “We already use domestic outside sources.” These are some of the comments BVWire received concerning coverage of India’s outsourcing services to the BV profession. India offers data collection, industry and economic research, competitive and comparable analysis, and financial modeling and valuation report reviews, among other services. The reported savings average about 50% of the cost of a valuation performed domestically on a long-term basis.
It is interesting to note that at the last AICPA conference, a valuation report that was showcased during a two-day case study analysis included an industry analysis section provided by a respected outside domestic source. During the session, neither the panel nor anyone in the audience questioned this practice. Based on the comments we’ve received, it seems some experts are okay with farming out industry or economic research, but only to well-known and reputable providers here in the U.S. Many are uncomfortable with the notion of offshoring any of the work, although it evidently is being done. But complex valuation calculations are off-limits no matter what, some say. That type of work, they feel, should be done in-house, especially if it’s for litigation.
What do you think? You can comment via email or go to BVR’s LinkedIn Group where you’ll find a discussion thread on this topic.