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Off-shoring / Outsourcing
                             Assurance



                                                      ...
OUTSOURCING / OFF-SHORING CONTROLS




                         Use of service providers doesn’t
                      red...
THIS IS MEANT FOR THOSE WHO HAVE CONCERNS ON THE
   FOLLOWING                  …………
                      DO YOU WISH TO O...
Off-shoring / Outsourcing Risks Vs. Controls
   Wrong selection of       Lack of unity
                                   ...
The Need for Independent Outsourcing Oversight




                                               Security                ...
The focus areas of Outsourcing Assurance

                                                                                ...
Why Outsourcing Assurance focus on these areas?



                                              Focuses on ensuring the l...
Outsourcing Assurance aims




                         Conformance
                          • Adhering to Laws, Regulati...
Outsourcing Governance Stakeholders


                      Board and executive       Set direction for outsourcing, monit...
Outsourcing Assurance Framework


                      Enterprise Drivers            PERFORMANCE                         ...
Alignment Agents

                                                                                       Program Managemen...
Assurance Scope (Strategy & Planning)

                                                                                   ...
Assurance Scope (Transition)

                                                                                            ...
Assurance Scope (Execution)


              Strategy &                   Transition
                                      ...
Assurance Scope (Program Closure)


             Strategy &                     Transition
              Planning
        ...
Any Queries ?




                                                                Please Contact:

                       ...
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IT OUTSOURCING ASSURANCE

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IT OUTSOURCING ASSURANCE

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Transcript of "IT OUTSOURCING ASSURANCE"

  1. 1. Off-shoring / Outsourcing Assurance Promoting Techserv Consulting Confidential & Private 1 Systems Integrity
  2. 2. OUTSOURCING / OFF-SHORING CONTROLS Use of service providers doesn’t reduce the Responsibility of corporate executives from maintaining effective internal controls - Public Company Accounting Oversight Board Promoting Techserv Consulting Confidential & Private 2 Systems Integrity
  3. 3. THIS IS MEANT FOR THOSE WHO HAVE CONCERNS ON THE FOLLOWING ………… DO YOU WISH TO OUTSOURCE / OFFSHORE IT SERVICES? ARE YOU NOT SURE ABOUT SELECTING THE RIGHT IT SUPPLIER? DO YOU FEEL THE NEED TO CONSIDER EXTERNAL DUE DILIGENCE COMPETENCE? WOULD YOU LIKE TO BE INDEPENDENT IN SUPPLIER SELECTION? ARE YOU NOT SURE ABOUT LOCAL REALITIES AND SUPPLIER FACTS? ARE YOU NOT ABLE TO ASSURE YOURSELF THAT SUPPLIER BILLING IS ACCURATE? HAVE YOU REGULARLY OBSERVED THAT SLAs ARE NOT COMPLIED WITH? ARE YOU NOT SURE THAT SUPPLIER IS FOLLOWING THE PROCESSES AS AGREED? ARE YOUR DELIVERABLES BECOME UNPREDICTABLE? DO YOU FIND SUPPLIER’S PRODUCT QUALITY IS NOT ACCEPTABLE? ARE YOU FEELING MISALIGNED WITH THE SUPPLIER? ARE YOU NOT SURE THAT IT / IS SECURITY WILL NOT BE COMPROMISED? Promoting Techserv Consulting Confidential & Private 3 Systems Integrity
  4. 4. Off-shoring / Outsourcing Risks Vs. Controls Wrong selection of Lack of unity Dishonor of Resource / Billing Failure to of Supplier / Of minds. realize benefits, Risks processes / Expectation Obligations, Inaccuracies, Reverse flow of Applications? Information security? Leakages? knowledge? Alignment? Phases Strategies Transition Execution Execution Programme & (Knowledge (Steady (Value add Closure Planning Transfer) State) State) Strategy Transition Continuous Continuous Continuous Control Due-Diligence Advisory Assurance Assurance Assurance Measures Strategic Process Cultural & Value Smooth Desired Alignment Alignment Performance Alignment Reverse Results Alignment Transition Promoting Techserv Consulting Confidential & Private 4 Systems Integrity
  5. 5. The Need for Independent Outsourcing Oversight Security Execution Assurance Assurance Start-up Relationship Assurance Assurance Value / Cost Compliance Assurance Assurance Outsourcing organizations require a structured, independent and competent assurance throughout the outsourcing / off-shoring relationships. This would help the organization to have checks and balances to realize the objectives. We have the competence to provide assurance services to the organizations to ensure that the outsourcing relationships realize the anticipated benefits. Promoting Techserv Consulting Confidential & Private 5 Systems Integrity
  6. 6. The focus areas of Outsourcing Assurance Outsourcing Assurance is a management process to provide a independent comfort to management that Outsourcing engagement processes are effective and efficient enough to provide the desired results envisaged at the beginning of the outsourcing engagement. Also, IC to provide identified material weaknesses in the EG NT AL VAL AT E IG UE outsourcing processes either at Outsourced TR GNM S I NM EN organization or at supplier end. AL T This assurance function should be established Outsourcing at strategic checkpoints to provide the required PER IGNME NT A LI G U R E Alignment alignment in the following focus areas: AL FOR NME T CUL MA N T www.itgi.org Strategic Alignment N Value alignment CE Performance alignment PROCESS ALIGNMENT Culture alignment Product alignment Promoting Techserv Consulting Confidential & Private 6 Systems Integrity
  7. 7. Why Outsourcing Assurance focus on these areas? Focuses on ensuring the linkage of business and outsourcing plans; Strategic alignment on defining, maintaining and validating the outsourcing value proposition; and on aligning outsourcing operations with enterprise operations Is about executing the value proposition throughout the outsourcing cycle, Value alignment ensuring that supplier delivers the benefits against the outsourcing strategy, concentrating on optimising costs and proving the intrinsic value of outsourcing Culture alignment Focuses on bridging the cultural gaps between two organization Focuses on ensuring required process infrastructure is established and implemented and institutionalized to have transparency in outsourced Process alignment processes. Ensure that these processes are improved continually and aligned to outsourcing objectives Tracks and monitors strategy implementation, project completion, resource Performance alignment usage, process performance and service delivery, using, for example, scorecards that translate strategy into action to achieve goals measurable beyond conventional accounting Promoting Techserv Consulting Confidential & Private 7 Systems Integrity
  8. 8. Outsourcing Assurance aims Conformance • Adhering to Laws, Regulations, Legislation, Policies and Procedures, audit requirements, etc. Performance Performance • Improving Performance Score card, Outsourcing efficiency and effectiveness, growth, etc. Conformance Outsourcing Assurance aims to balance conformance and performance goals Promoting Techserv Consulting Confidential & Private 8 Systems Integrity
  9. 9. Outsourcing Governance Stakeholders Board and executive Set direction for outsourcing, monitor results and insist on corrective measures Defines business requirements for outsourcing and ensures Business management that value is delivered and risks are managed Supplier management Monitors outsourcing services as required by the Business Management Provides independent assurance services to demonstrate Assurance services that outsourcing delivers what is needed Outsourcing management Delivers and improves outsourcing services as required by the Client Management Risk and compliance Measures compliance with policies and focuses on alerts to new risks Supplier Service Buyer Independent Assurance Promoting Techserv Consulting Confidential & Private 9 Systems Integrity
  10. 10. Outsourcing Assurance Framework Enterprise Drivers PERFORMANCE CONFORMANCE Business Goals Acts & Regulations A Outsourcing Drivers Scorecard Sarbanes-Oxley Act, A COBIT,CMMI,ISO S 27001 etc. S S S U U R Outsourcing Governance R COBIT A A N N C C E Best Practice Standards ISO ISO CMMI E 9001:2008 27001 Processes and Procedures Governance Functional Operational Processes Processes Processes Promoting Techserv Consulting Confidential & Private 10 Systems Integrity
  11. 11. Alignment Agents Program Management • A A Process Design l l • i Process Implementation i V g g V a n • n Delivery Management a m m l l u e • e SLA Management u e n n e t t P P R R Program Management O O Client Management D C • U E Contract Administration T S • Contract Administration • Assurance S Program Oversight • Program Planning (Alignment Agents) • SLA Management • Program Oversight • Program Oversight • Escalation Resolution PERFORMANCE S S t A t Supplier Management A r r l l a i a i t g t • Outsourcing Strategies e g n e n g • Outsourcing Oversight g m m I e I e n c • Supplier Selection c n t t • Program termination Promoting Techserv Consulting Confidential & Private 11 Systems Integrity
  12. 12. Assurance Scope (Strategy & Planning) Deliverables Report on Strategies Strategy & Transition Due Diligence Reports Planning Supplier selection process review report IT Processes Information Security Assessment report Systems & Processes assessment Report Contract Review Report Execution Program Strategy & Planning Closure Strategy reviews Planning reviews Supplier Selection reviews Supplier infrastructure due diligence Outcome Suppliers Human Resources due diligence Right Pricing is established Suppliers Process infrastructure due diligence Strategy and Planning verified Suppliers’ claims validated Supplier readiness due diligence Risks towards security assessed Contract negotiation / re-negotiation (Pricing) Human resources claims assessed Outsourcing (Supplier) readiness assessed Information Security and Privacy assessment Outsourcing (Customer) readiness assessed Effort estimation review Promoting Techserv Consulting Confidential & Private 12 Systems Integrity
  13. 13. Assurance Scope (Transition) Deliverables Strategy & Transition Review Reports (Processes in transition) Planning Process documentation (if required) IT Processes Review report on Knowledge transfer Establish On-site Oversight mechanisms Review of Staffing Audit reports (Transition Phase Execution Program Closure Transition Transition Planning review Transition Schedule review Program staffing review Outcome Effective transition strategy Knowledge transfer execution audit Efficient transition strategy Pilot project execution review Process infrastructure readiness Program & Project Planning Process definition Program transition health status Pilot project validation Program & Project execution Process definition Supplier readiness against the plan Quality Assurance Process definition Risk assessment and mitigation Quality Control process definition Information Security process definition Promoting Techserv Consulting Confidential & Private 13 Systems Integrity
  14. 14. Assurance Scope (Execution) Strategy & Transition Deliverables Planning Process advisory Assurance Process Audit reports Information Security audit reports Billing verification report Program Execution Closure Execution Periodic Audit of Contractual obligations Periodic Audit of Information Security processes Outcome Alignment of execution processes Periodic Audit of process implementation Alignment of info. Security requirements Periodic Audit of Service Level Agreements Independent Program status Periodic Audit of deviations, escalations Process improvements Contractual obligations by supplier Periodic Audit of Supplier’s infrastructure Risk identification & Mitigation Periodic Audit of Billing Account Accurate billing as per contract Promoting Techserv Consulting Confidential & Private 14 Systems Integrity
  15. 15. Assurance Scope (Program Closure) Strategy & Transition Planning Deliverables IT Processes Review Reports Validation Reports Audit report Execution Program Closure Program Closure Reverse Transition Planning Outcome Reverse Transitioning Smooth reverse transition Compliance to regulations, laws etc., Contract, Regulatory compliance Effective reverse knowledge transfer Program sign-offs All assets are returned Program closure Promoting Techserv Consulting Confidential & Private 15 Systems Integrity
  16. 16. Any Queries ? Please Contact: ARUL NAMBI aruln@techservconsult.com +91 9892504538 www.techservconsult.com Promoting Techserv Consulting Confidential & Private 16 Systems Integrity
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