The recent article published by Ernst & Young (EY) on the outsourcing or co-sourcing of the corporate internal audit function caught our attention. According to an EY survey, 77% of senior executives see outsourcing or co-sourcing as worthwhile, yet only 28% are actually taking action in this area by using external service providers. EY goes on to discuss seven myths of why companies are skeptical including the fear of losing control, the expected high cost and the thinking that internal auditors know better.
Our opinion at Continental Audit, is that it is very worthwhile and cost-effective for companies to outsource or co-source internal audit functions. This is especially true when it comes to specialized IT auditing like the areas in which we work. Some IT specialists are hard to find and deploy for IT audit purposes e.g. database auditors.
We encourage companies to explore their options in this area. There is a high probability that the conclusion will be to outsource/cosource some functions especially in the IT audit space.
Reference: http://www.ey.com/GL/en/Services/Advisory/Risk/Internal-Audit/To-cosource-or-not-to-cosource---Fact-or-fiction--Seven-cosourcing-myths-exposed
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Yes, outsourcing benefiting the companies to save the cost.
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I'm into outsourcing; I don't think there's anything wrong with it. There are so many reasons that explain how and why outsourcing saves time and money. However, I could also understand why most Americans find it unfair that their companies outsource, it's because it reduces job opportunities on their country.
ReplyDeleteBut outsourcing have lots of benefits for both the company and the firm. So, we really can't blame them for doing such a smart move for their business.
Like any other stuff, outsourcing also has its disadvantages. One example is how to make sure if you'd have a high quality result. But other companies find some ways to eliminate most of those disadvantages by using techniques to make outsourcing effective.
"Continue working ON your business instead of working IN it."