April 29 (Reuters) — Several U.S. accounting firms, including RSM US, Moss Adams, Sikich (backed by Bain Capital), and CohnReznick (backed by Apax Partners), are expanding their operations in India to address a growing shortage of accountants in the United States.

The hiring surge is driving a rise in enrollment for specialized commerce courses across India and could position the country as a major global hub for accounting talent — much like the tech outsourcing boom of the 1990s that reshaped the global IT industry.

“This could be the breakthrough moment for public accounting firms in India,” said Balaji Iyer, managing partner at Moss Adams India. “The U.S. is facing a significant and growing shortage of certified public accountants, and this trend will only worsen over time.”

According to the U.S. Bureau of Labor Statistics, around 1.78 million people were working as accountants in 2024 — about 10% fewer than in 2019 — largely due to retirements and a limited pipeline of new talent.

The American Institute of CPAs (AICPA), which oversees CPA exams and auditing standards, has acknowledged the “talent pipeline issue” and commissioned a study last year. It noted that nearly half of its members are over the age of 50.

The National Talent Advisory Group, which conducted the study, found that the accountant shortage has delayed key filings at several companies, including toymaker Mattel.

Accounting careers, often associated with long hours, relatively lower pay compared to other finance roles, and a mandatory fifth year of university education for CPA certification, have become less attractive to young professionals.

“Fewer students are majoring in accounting because it’s seen as less exciting than tech or finance, and automation has also created uncertainty,” said Rebecca Hann, associate dean of research at the University of Maryland’s Robert H. Smith School of Business, who authored a research paper on the accountant shortage.

RSM US plans to more than double its workforce in India to 5,000 by 2027. Sikich is also ramping up hiring in India, looking for accountants, auditors, and tech specialists to support its automation and AI initiatives.

“Ultimately, it’s not just about filling vacancies but transforming how we deliver services, combining skilled talent with advanced technology,” said Bobby Achettu, principal at Sikich and head of its India operations. Sikich currently has around 200 employees in India, making up about 10% of its global workforce.

Meanwhile, the Big Four accounting firms — Deloitte, EY, KPMG, and PwC — had between 140,000 to 160,000 employees across their India Global Capability Centers (GCCs) as of 2024, according to UnearthInsight, a market intelligence firm. The Big Four did not respond to Reuters’ requests for comment.

Building the Talent Pipeline

The move by accounting firms to source talent from India mirrors earlier trends in tech, when global giants like Walmart, Microsoft, and JPMorgan Chase set up large-scale operations in India to tap into its engineering workforce.

The U.S. Bureau of Labor projects that accountant and auditor jobs will grow by 6% between 2023 and 2033 — a pace faster than the average for all occupations.

In response to the urgent need for new talent, some mid-sized firms are now hiring directly from Indian universities and even offering to sponsor CPA certification for new recruits.

“Initially, it was the Big Four. Now mid-sized firms like EisnerAmper and BDO are also recruiting from our campus,” said Biju Toms, Director of the Department of Professional Studies at Christ University in Bengaluru.

Demand for specialized programs like Christ University’s Bachelor of Commerce (International Finance) is soaring — the program received around 3,000 applications for just 120 spots this year.

“There’s always a need for trained talent with industry exposure, and cost advantages make India an attractive destination,” Toms said. “Just like tech outsourcing, accounting is now becoming a major growth area.”