The offshore outsourcing industry has progressed to the point that massive savings are now available for many companies--a fact that has more small-company CFOs pondering whether to offshore their finance and accounting work.

Traditionally, the biggest drawbacks to this have been compliance and security concerns. Few small companies were willing to send their most sensitive data overseas to companies with a short track record. But the costs keep on declining, the expense pressure keeps on climbing and we're now at the point where it's a good option for many. CFO notes the experience of Rhapsody, a music subscription company with roughly 100 employees. Rhapsody's CFO took the plunge and hasn't looked back.

"The contract is pretty clear that (the outsourcing service provider) must treat our data as if it were theirs," the CFO was quoted as saying.

Rhapsody retains control over all data, which physically resides in Seattle. "And there's almost an exact 12-hour time difference, so I'll have three or four e-mails in my inbox in the morning, asking for approvals. They work while we sleep."

This sort of arrangement isn't for everyone. But it likely will be for many. One idea to explore is the idea of hybrid finance and accounting staff, which might call for some of the more rote work to be handled abroad while strategic work remains in-house.

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