Outsourcing activities offers organisations significant advantages, such as cost savings, access to specialist expertise, and increased operational efficiency. However, outsourcing also comes with considerable risks. Many organisations lack sufficient insight into, and control over, the risks embedded within outsourced processes. To better understand these risks and assess the extent to which the outsourcing partner is managing them, it is essential to ask the right questions – and follow-up questions – during the due diligence phase of the selection process. Subsequently, it is important to define clear obligations in the outsourcing agreement to ensure the outsourcing party can adequately monitor performance. Effective monitoring also requires solid information flows from the outsourcing partner and regular discussions with the compliance officer. This article explores how organisations can truly gain control over risks in their outsourcing chain.
The article is available in Dutch here.
