Compliance Office - How about a global delivery model to bridle in costs?

Across the USA, there has been a growing awareness of compliance. In recent times, the following areas have gained high significance:

1. Risk Management
2. Governance
3. Control
4. Assurance

Increasingly, there is pressure on public companies to grow services relating to compliance matters.

Forrester's Business Technographics reports:

'IT is now at the core of most organizations' ability to execute strategies. Across enterprises, legislations such as the Health Insurance Portability and Accountability Act (HIPAA) and the Sarbanes-Oxley (SOX) Act have resulted in a demand for improved compliance and risk management. Better IT governance has become integral for CIOs and their IT organizations.'

The Compliance Office

The Compliance Office or a nodal center where Enterprise Risk is managed is a critical nerve center for many organizations today. In the past, compliance matters belonged to the finance and accounting domain. However, today the compliance office brings together a range of competencies. Although finance auditors, information security professionals and lawyers are included, process analysts or process engineers seem best suited to drive the Compliance Office. The argument that this choice is best left to the organization's peculiar context is definitely valid. However, cost-effectiveness can be significantly improved by constructing a Compliance Office that engages a global competency model.

How much Global?

Process mapping and policy documentation are undoubtedly critical functions. Not only do you diligently need to collect evidence for compliance (evidence organization), but you also need to establish a Defensible Standard of Care in case anything should go wrong. Recent experiences have proved that it is possible to have this effectively delivered from an offshore model. Process Analysts and engineers from India for example, become part of the Compliance Office and plug this requirement quite effectively, helping the organization to make significant cost savings. Of course, like all global delivery models, the most important factor is how these global competencies gel together. It is probably a wise idea to weigh the risks of outsourcing, in such a context. According to research by Diamond Management and Technology Consultants, 47% of companies have prematurely ended an outsourcing arrangement in the last year alone. "Outsourcing, onshore or offshore, if not done right or done for the right reasons can tip things the wrong way," according to Chris Jones, principal of consultancy Source: Renaissance.

Key considerations to ensure a successful outsourcing venture

Before engaging global competencies, here are two key considerations a CIO must review in order to create a successful outsourcing venture.

1. Competency sourcing plan According to Gartner, 65% of IT organizations lack a sourcing plan, while those that do, merely have a document collecting dust. Nothing would help better than having a definite decision framework on how competencies can be distributed �whether you should do it all in-house, or if you should be even considering a global team. Having a clear process map would help you decide which part of the process can be handled from where and if there would be any risks ensuing from it.
2. Costing framework Once again, just like the competency sourcing plan, many organizations do not have a true understanding of internal costs and service levels. While ‘guesstimates‘ are not a good idea, high precision may also not be warranted. What is required is a reasonable framework that will give useful indications of the costs against service levels for different scenarios.

Why should I choose Thomas & Alex for SOX compliance?

Thomas & Alex has a large in-house resource pool of process analysts/process engineers, finance auditors, lawyers and information security professionals. Our process analysts and engineers begin by studying and understanding your processes, analyze them and architect a detailed competency and process sourcing plan. We provide case-by-case advice on SOX and PCAOB compliance to public companies. You will get a complete cost-efficient analysis of your financial statements, and the practices that your company should be incorporating in order to meet SOX and PCAOB regulations. We will also provide you with easy-to-use accounting and bookkeeping software services that would provide greater security to your data and documents. By outsourcing your accounting, bookkeeping and tax return filing operations to us, you can achieve remarkable real-time efficiency in a protected and secure environment. Besides, our software applications will help you integrate information into your billing system. Thomas & Alex is committed to helping you streamline business solutions, accelerating your productivity and safeguarding financial processes, even as you keep abreast with SOX compliance. We believe in understanding your business activities, tax and filing requirements, regulatory obligations under SOX and PCAOB, and the jurisdiction of your state. Our professional team will guide you at every step to ensure a smooth transition and business continuity without increased overheads or concerns.