Outsourcing Assurance
- 1. Off-shoring / Outsourcing Assurance Advisory Techserv Consulting Confidential & Private 1
- 2. Off-shoring / Outsourcing Pitfalls Vs. Controls Wrong choice Lack of unity Dishonor of Resource Unable to of Supplier? Of minds? Obligations? Manipulations? realize the benefits? Supplier Knowledge Steady Value Add Contracting Selection Transfer State State Supplier Contracting Start-up Engagement ROI Due-Diligence Advisory Assurance Assurance Assurance Strategic Cultural Process Performance Value Alignment Alignment Alignment Alignment Alignment Techserv Consulting Confidential & Private 2
- 3. 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 fetch the anticipated benefits. Techserv Consulting Confidential & Private 3
- 4. 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 Techserv Consulting Confidential & Private 4
- 5. 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 Techserv Consulting Confidential & Private 5
- 6. 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 Techserv Consulting Confidential & Private 6
- 7. 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 Techserv Consulting Confidential & Private 7
- 8. 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 9001:2000 27001 Processes and Procedures Governance Functional Operational Processes Processes Processes Techserv Consulting Confidential & Private 8
- 9. 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 Techserv Consulting Confidential & Private 9
- 10. Assurance Scope (Strategy & Planning) Deliverables Review Reports Strategy & Transition Due Diligence Reports Planning Pricing consultation Report IT Processes Information Security Assessment report Contract Advisory Report Execution Program Strategy & Planning Closure Strategy reviews Planning reviews Supplier Selection reviews Supplier infrastructure due diligence Outcome Right Pricing is established Suppliers Human Resources due diligence Strategy and Planning verified Suppliers Process infrastructure due diligence Suppliers’ claims validated Risks towards security assessed Supplier readiness due diligence Human resources claims assessed Contract negotiation / re-negotiation (Pricing) Outsourcing readiness assessed Information Security and Privacy assessment Effort estimation review Techserv Consulting Confidential & Private 10
- 11. Assurance Scope (Transition) Deliverables Strategy & Transition Review Reports Planning Validation Reports IT Processes Process documentation Execution Program Closure Transition Transition Planning review Transition Schedule review Program staffing review Outcome Effective transition strategy Knowledge transfer execution review Efficient transition strategy Pilot project execution review Process infrastructure readiness Program Planning Process definition Program transition health status Pilot project validation Program execution Process definition Supplier readiness against the plan Quality Assurance Process definition Risk assessment and mitigation Process infrastructure Quality Control process definition Information Security process definition Techserv Consulting Confidential & Private 11
- 12. Assurance Scope (Execution) Strategy & Transition Deliverables Planning Review Reports Assurance Validation Reports Process documentation Audit report Program Execution Closure Execution Periodic Audit of Contractual obligations Outcome Periodic Audit of Information Security processes Alignment of execution processes Periodic Audit of process implementation Alignment of info. Security requirements Program status communication Periodic Audit of Service Level Agreements Process improvements Periodic Audit of deviations, escalations Risk identification Periodic Audit of Supplier’s infrastructure Techserv Consulting Confidential & Private 12
- 13. 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 Program closure Techserv Consulting Confidential & Private 13
- 14. Any Queries ? Please Contact: ARUL NAMBI Director aruln@techservconsult.com +91 9892504538 www.techservconsult.com Techserv Consulting Confidential & Private 14