Option to configure backups without tarballs

As a system administrator, i would like the ability to perform full account backups without tarballing each account, but rather have the files available in their full directory structure on disk. We have a third party offsite backup provider with retention and being able to version/difference individual files using this system would be ideal. Currently we backup the tarballs but as each tarball is an individual file, our backup system cannot index the individual files contained within. Having this ability would allow us to save a lot of space on our backup server, and also make restoring individual files a breeze.