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| Frequently Asked Questions |
| The following are frequently asked questions on outsourcing for your decision on an appropriate solution for your organization |
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What are the advantages and disadvantages of outsourcing?
What is co-sourcing? Why is internal audit a suitable candidate for co-sourcing? What is the difference between co-sourcing and consulting? What are some of the projects that could be co-sourced pertaining to internal audit areas? Why should my organization co-source internal audit to Active Best Source Consultancy Pte. Ltd. instead of other companies? What are the advantages and disadvantages of outsourcing? Outsourcing your non-core operations helps you to reduce cost of employing full-time staff. It also focus your attention on core or mission-critical areas to maximize profits for your organization. A company that outsources loses day-to-day control over its activities to the vendor, usually a professional service firm. One way to mitigate this so-called disadvantage is by co-sourcing. Back to Top What is co-sourcing? Co-sourcing is a partnership between a customer and an outside vendor, a professional service provider. A company chooses the vendor, who works with and often alongside but doesn't replace the existing staff based on specific skills needed to get the job done. When the project is finished, the professional service firm's job is over, too. Take an example of internal auditing. CO-SOURCING OF SOME INTERNAL FUNCTIONS is a way for an organization to maintain control while cutting costs and maximizing internal audit capabilities. Co-sourcing arrangements with outside vendors allow the in-house auditors to retain responsibility for the internal audit process while relying on the outside entity for specialized technical skills and personnel. Back to Top Why is internal audit a suitable candidate for co-sourcing? INTERNAL AUDIT IS A LOGICAL CANDIDATE for co-sourcing as it is well suited to organizations experiencing rapid strategic expansion into global markets and diversifying into a variety of business lines, each focused on a niche market requiring specialized expertise. CO-SOURCING HAS HELPED MANY organizations that don?t have the staff capability to deploy new systems. For example, co-sourcing has been successful for information services projects ranging from consolidation of e-mail to establishing electronic data interchange systems. CO-SOURCING ALLOWS AN ORGANIZATION to obtain maximum value from the internal audit function while saving on long-term investment in staff. It also provides in-house flexibility and control, because projects can be planned and executed without adding staff. Back to Top What is the difference between co-sourcing and consulting? Although it may seem similar to consulting, co-sourcing is different because the company's personnel play an ongoing role in the project. In a typical consulting project, a consultant comes into a company, plans and performs a specific task and then presents a report, working independently most of the time. In a co-sourcing arrangement, the company staff takes an active part in project planning and decision making and may participate in preparing the final report. Instead of relinquishing control over an activity, as is the case with outsourcing and hired consultants, company managers involved in co-sourcing actively manage and work alongside the specially skilled outsiders. Back to Top What are some of the projects that could be co-sourced pertaining to internal audit areas? Researching information on industry best practices and receiving input on the overall control framework for alignment with corporate strategies, diagnostic reviews of asset management, secondary marketing, cost evaluation of proposals, risk analysis and development of evaluation models, assistance with review of systems and controls in revenue and operational areas, documentation of best practices and peer company accounting procedures, controls and reporting procedures for various segments of similar businesses. Back to Top Why should my organization co-source internal audit to Active Best Source Consultancy Pte. Ltd. instead of other companies? Active Best Source Consultancy Pte Ltd's niche specializations are in internal auditing, special certification and other reviews. As such, we could accord our client greater attention to their requirements. Our team of competent and experienced internal audit professionals' responsiveness, dedication and work attitude are comparable to larger companies, yet at lower fees. Standards are always upheld in striving to exceed expectation and specific needs of our clients Back to Top |
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