From Protiviti’s The Bulletin – Volume 3, Issue 8
As companies focus on managing their operations in a difficult economic environment, they seek to become leaner and more focused, efficient and effective. Over the last decade, many international companies have offshored work to other countries with a view toward achieving these objectives. Some have set up captive subsidiaries, while others leverage third-party outsourcing service providers. This document focuses on questions for board members and management to consider when managing risks related to outsourcing or offshoring business activities.
A few sample questions include: When management is considering outsourcing, are the reasons, advantages and disadvantages discussed in a timely manner with the board? Are you satisfied with management’s articulation of the expectations and goals for the company’s outsourcing initiatives? Are the expectations and goals clearly linked to the company’s strategy and performance goals?