- Armanino, a top 20 US CPA firm with $700+ Million in revenue opened its first office in Ahmedabad in January 2024.
- In just 11 months, the team has grown to 130 people, and now, Armanino is opening yet another office in Ahmedabad and Hyderabad!
- Shrenik Shah, Managing Director of Armanino LLP India, shares insights on their hiring strategy and what’s fueling their bold growth plan in India!
- Establishing Armanino’s operations in India
- Expanding our services across various business units (BUs)
- Building resources to support these BUs
Our goal is to provide top-notch support to U.S. clients and partners, leveraging the talented team we have here in India.
I’m truly privileged to be part of this incredible journey, helping to establish Armanino’s strong presence in India!
Journey establishing Armanino’s presence in India
Building Armanino’s presence in India has been an extraordinary experience.
This is my second time building a CPA firm in India (I was previously with Citrin Cooperman India), and I feel like I’ve accomplished more in the past 11 months than in the past 10 years of my career.
We established both the physical and intellectual infrastructure.
- Legal entity
- Opening bank accounts
- Setting up our office.
- On the intellectual side, it was all about hiring and building a top-tier team.
I will never forget onboarding our first employee at a Starbucks because I didn’t have an office space yet. It was a unique and challenging experience!
Starting from scratch with a new team and a new name in India came with its emotional challenges. But we’ve scaled rapidly, and today, we have a team of over 130 people.
Also read: From Citrin Cooperman to Armanino: How this CA built a career helping US CPA Firms looking at India
Challenges establishing Armanino’s India operations?
The challenges I faced came from two main areas:
Building trust with the US team
- Clearly define the “why” behind building an operation in India, to the US leadership.
- It’s not just about cutting costs; it’s about creating a team that mirrors the quality and experience of the U.S. team.
- We needed to convince leadership that India was “not just a back-office location”, but a true extension of Armanino’s global operations.
Establishing a strong local India team
- Locally, it is about recruiting the right people who align with our high standards.
- Each business unit has its unique requirements, and each candidate must meet those expectations.
- The process requires a lot of patience, but the results are worth it when you have the right team in place.
Built a 130+ Team at Armanino India
Building a team of 130 people in such a short span required a lot of effort and strategy.
At Armanino India, we provide three core services:
- Tax
- Trust
- Consulting
Each unit operates with its own structure, comprising:
- Senior leadership at the top
- Directors
- Managers
- Team leads
When it comes to hiring, we prioritize experience and skill.
Unlike larger firms that may hire entry-level staff, we have focused on hiring experienced professionals, especially those with 2-4 years of experience sometimes even at the associate level.
This is the core of our hiring strategy for the next few years.
Why? To ensure that senior-level staff in India can handle tasks like reviewing returns with the same expertise as their counterparts in the U.S.
Our primary expectation is that our talent in India meets the same high standards as our U.S. team.
It went like this…
- Our hiring success rate is around 10%. Why? Because the India office is NOT a back office but rather an extension of the US office.
- Initially, I handled most of the recruitment myself, as we didn’t have a dedicated talent acquisition team.
- Even the U.S. team was heavily involved in the interview process until July.
- Now, most of the hiring is done in-house (90%), but we still rely on recruiters to help with certain searches.
Why Armanino is Expanding to Hyderabad & Ahmedabad?
We have seen phenomenal growth in India, surpassing our expectations!
Our original goal was to have 80 employees by the end of the year, but we’re already over 130.
Looking ahead, we expect to grow to 300 employees in India in the next few years.
To support this rapid expansion and our ambitious plans, we’ve decided to open additional offices in Ahmedabad and Hyderabad.
The decision to expand into these cities is driven by our desire to tap into the best talent across India.
Hyderabad, for example, has a strong IT and technology consulting talent pool that aligns perfectly with our services. This will significantly bolster our consulting practice, which already includes 26 different practice areas.
Private Equity Invests 20% in Armanino: Impact on India?
Armanino’s approach to private equity was strategic: they took a minority investment (20%) ensuring the team retains control and ownership.
Now, regarding India’s role in all this – private equity, M&A, technology, AI, and offshoring are key factors – India will be crucial in Armanino’s growth alongside the U.S.
- A minority PE investment will allow us to maintain control while still receiving the financial support needed to scale.
- With additional resources from PE investments, Armanino can expand its presence in India, create more opportunities for talent, and build a stronger team to support U.S. clients.
- This isn’t about outsourcing jobs but about creating a stronger, more capable global team.
We’re not taking jobs from the U.S.; we’re helping build a better team and a better work product for them.
Also read: Private Equity money is pouring into US CPA Firms. Surge in offshoring to India?
Role of Private Equity in the accounting industry
The role of Private Equity in the accounting industry is almost inevitable.
Smaller accounting firms that want to survive MUST either merge or seek private equity resources.
Looking ahead, while there are currently around 5,000 accounting firms in the U.S., the number will shrink significantly over the next decade due to ongoing consolidation. This trend is inevitable.
However, HOW this is done is crucial.
Retaining control is vital because accounting is a service-based industry. Unlike manufacturing, where automation can take over, accounting is about personal relationships—with clients and employees.
What is your closing message?
I guarantee you that by 2030, basic accounting and tax preparation will be obsolete.
AI is advancing so rapidly that these fundamental services will likely be replaced.
To stay ahead, you need to focus on technical skills and tap into markets with technical talent.
Right now, a CPA is becoming the baseline for me.
Looking for CFE and CIA experts in internal audit, forensic accounting, and fraud advisory for audit and trust roles.
Valuation services and CFO advisory are also key. It’s an ocean of opportunities waiting to be explored.
