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  1. 1. Techserv Outsourcing Assurance Executive Brief 8 Significant threats to IT Outsourcing / Offshoring Our Assurance Prevention . Detection . Correction “Promoting Systems Integrity”
  2. 2. There is a perception created often by the Supplier that the outsourcing results will be quicker, beneficial and supplier would cater to the requirements of the client in transparent manner from the word go. Another hope of client is that the suppliers will adapt more readily in the Use of service face of regulatory pace, evolution, client’s culture, in alignment to client’s competence. The supplier’s thinking providers doesn’t and client’s belief that the benefits will be achieved very easily has resulted in many failures. reduce the Responsibility of If the organization has to succeed in the outsourcing strategy, risks have to be recognized and addressed at the corporate executives foundation stage of the outsourcing with out fail. Experience has shown that many companies make from assumptions about what is included in the outsource proposition. Whereas, it is neither possible nor cost- maintaining effective effective to define contractually every detail and action, therefore the Independent Outsourcing Assurance internal controls process provides the mechanism to balance risk, service demand, service provision and cost. - Public Company Accounting Most outsourcing contracts include basic controls and Oversight Board service execution provisions; however, one of the main objectives of the Independent Outsourcing Assurance process, is to ensure continuity of service at the appropriate levels, profitability and value add to sustain the commercial viability of both parties. 8 SIGNIFICANT IT OUTSOURCING THREATS 1. Reactive behavior patterns by Client and Supplier 2. Wrong selection of IT product / services supplier 3. Loss of Information Confidentiality, Integrity, Availability 4. Long gestation period to reach business as-usual state 5. Mis-trust between Client and Supplier 6. Overstated supplier bills 7. Non-compliance to Policies, Procedures, Regulations 8. Lack of alignment in terms of Process and Product Quality
  3. 3. Techserv have developed customizable IT Outsourcing governance framework (Processes, Guidelines, Templates, Checklist, standards) to address IT outsourcing threats. These controls can be applied during all the phases of IT outsourcing from IT strategy to value add state. This standard methodology can be applied with minimum changes, which can be as low as 5 – 15% of effort to develop the new IT outsourcing governance framework from scratch. OVERVIEW OF TECHSERV’S IT OUTSOURCING GOVERNANCE
  4. 4. TECHSERV’S ASSURANCE SERVICES …. Outsourcing Transition & Information Project Project Strategy Performance Security Staffing Billing Assurance Assurance Assurance Assurance Assurance Risk IT Outsourcing Results are not Loss of IP Poor Quality of Revenue Contract in alignment Compromise Interactions Leakage SLAs standard on Poor quality of Supplier expectations Confidentialit deliveries y, Integrity Assurance Due Diligence Oversight Oversight Oversight Oversight Activities • Strategy • IT • IT Security • Project • Audit of Infrastructure Policies Staffing • Supplier Billing data • Contract • Process • Implementation • Contract • Audit of Review • Transition • Audits • Competency Time sheets • Project Audits Frequency • Quarterly / • Quarterly / • Quarterly • Quarterly / • Quarterly / Half –yearly / Half –yearly / Half –yearly / Half –yearly / Half –yearly / Yearly Yearly Yearly Yearly Yearly Purpose • Strategy • To Provide • To Provide • Provide • To provide review independent assurance assurance on assurance to assurance on on Project is • Supplier Due software information staffed as per the effect diligence that billing development security contractual is accurate • To Provide Processes both obligation to and inputs for in terms of ensure complete Contract definition and effectiveness Process implementation and efficiency Arul nambi Cell +91 9892504538 Tel. 91 – 22 – 28573170 E-MAIL : aruln@techservconsult.com www.techservconsult.com “Promoting Systems Integrity”