The practice of outsourcing,or contracting out one or more elements of an organisation’s operations,has become widespread as large organisations seek to reduce costs,leverage technological expertise or improve customer value.

Whilst a third party relationship may improve efficiency and / or effectiveness, many of the risks cannot be outsourced and an organisation must put safeguards in place to protect its own reputation.

This report outlines a number of approaches in the private and public sectors to managing the risks associated with those supplier relationships, including the practices of internal audit function.

It focuses on strategic risks related to outsourcing of services and the role of internal audit. The report contains five case examples of organisations from the private and public sectors including Crossrail which harness internal audit in relation to the risk of outsourcing. Crossrail has recognised the need to reduce audit intrusion from within the project itself, and has developed a fully integrated Audit Planning process in which all audit activity is co-ordinated and monitored.

The full document can be accessed below.