What If Outsourcing Is Restricted? Why Domestic Outsourcing Future-Proofs Your Firm

Published: September 11, 2025

Introduction

Outsourcing has long been a backbone of efficiency in the accounting industry. Many firms depend on offshore providers for tax preparation and IT support, hoping to reduce costs and expand capacity. But recent reports suggest that the political landscape may be shifting.

The idea of restricting or even banning IT outsourcing has been floated in policy discussions, and lawmakers are now considering proposals to impose new taxes on jobs sent overseas. For accounting firms, the implications are clear: where you outsource matters more than ever.

Proposed Outsourcing Restrictions: What’s on the Table?

The HIRE Act would impose a 25% tax on jobs outsourced overseas, eliminate tax deductions for those expenses, and require companies to disclose their outsourcing arrangements. If enacted, this bill could directly undermine the cost advantage that firms rely on when offshoring routine work.

At the same time, political activists have called for broader restrictions. Laura Loomer, for instance, has made headlines with her push to “Make Call Centers American Again,” urging the Trump campaign to ban offshore IT and customer service outsourcing.

While no final policy has been enacted, the conversation is shifting. Outsourcing, once seen as purely a cost-cutting tool, is now under the spotlight of politics and regulation.

Why Accounting Firms Should Take Notice

The U.S. accounting profession is already leaning on Indian outsourcing to address talent shortages. Many mid-sized firms are doubling their overseas headcounts just to keep up with demand. If restrictions or taxes disrupt these models, the effects could ripple through tax season, raising costs and jeopardizing client deadlines.

There are also reputational risks. Clients increasingly want assurances that their financial data is handled securely. If regulations spotlight offshore outsourcing as a weak point, firms relying on it may struggle to maintain trust.

Risks Beyond Regulation

Concerns about outsourcing extend beyond politics. The Public Company Accounting Oversight Board (PCAOB) recently warned that heavy reliance on remote and offshore work may hurt audit quality. Their review found deficiencies in more than 40% of inspected audits, partly due to weakened training and oversight.

And international precedent shows the impact of bans. When Mexico restricted subcontracting in 2021, wages rose by 35% on average as companies were forced to bring jobs back in-house, reducing flexibility and raising costs Minneapolis Fed.

Domestic Outsourcing: A Future-Proof Strategy

Firms can avoid these risks by moving to domestic outsourcing models. By partnering with SAM Technology, accounting firms can:

• Ensure compliance and stability regardless of political shifts
• Reassure clients that tax data never leaves U.S. jurisdiction
• Scale during tax season without year-round payroll costs
• Free up internal staff for advisory services billed at $275 per hour and beyond

Because SAM is entirely domestic, potential bans or taxes on offshore outsourcing will never disrupt operations.

A Tax Season Example

Imagine a mid-sized accounting firm that outsources tax prep offshore. A sudden regulatory change imposes new taxes or restrictions during filing season. The result: delays, cost overruns, and shaken client confidence.

Now compare that to a firm partnered with SAM Technology. Tax prep flows seamlessly, compliance deadlines are met, and partners focus on high-value advisory while outsourcing risk stays off the table.

Conclusion

The political conversation is clear: offshore outsourcing is under pressure. With proposals like the HIRE Act and public calls to ban overseas outsourcing, firms can no longer afford to ignore the risk.

Domestic outsourcing with SAM Technology offers a future-proof solution. It delivers scale, security, and profitability without exposing your firm to political or compliance uncertainty.