This outsourced processes register:
An outsourced processes register is a tool that enables organizations to understand, manage and monitor the risks associated with their outsourced processes. It is a living document that should be reviewed and updated regularly. An outsourced processes register should include all the details of the outsourced processes, the rationale for outsourcing, the risks associated with each process, and the controls in place to mitigate those risks. It should be reviewed regularly to ensure that it remains up to date and that risks are being effectively managed.
There are many reasons why companies choose to outsource work. The most common reasons are to save money, improve efficiency, access specialist skills or to free up internal resources. Outsourcing can save companies money because they can contract with another company or individual who may be able to do the work cheaper or they have expertise that a company does not have internally. Economic reasons are usually the case when the work is being done in another country where labor costs are lower. Outsourcing can bring benefits but, it also introduces new risks that need to be managed. Here are four of the main risks associated with outsourcing work.
1. Loss of control. When you outsource work, you are essentially giving up control of that work to someone else. This can lead to a loss of quality control, as well as a loss of control over the final product.
2. Dependence on the outsourced company. When you outsource work, you become dependent on the company or person you have outsourced to. If they experience any problems, it can directly impact your business.
3. Lack of flexibility. Once you have outsourced work, it can be very difficult to make changes. This can lead to problems if your business needs to make changes to the work that has been outsourced.
4. Hidden costs. You may have to spend more time managing, training and communicating with your outsourced workers than first thought.
This outsourced processes register has provisions for the following aspects of an outsourced process: