Conventional belief is that outsourcing is not yet pervasive in Asia and that it appeals only to companies in developed but high cost economies such as Australia and Japan because it helps them to save on labor and operating costs. The reality is that even businesses in China and India, where there is little arbitrage in labor and operating costs, actually outsource some business functions. This paper from KPMG International explores the cost and productivity benefits that companies believe outsourcing can bring them and looks at the impact that outsourcing can have on global competitiveness.
The development of a broad ranging fraud risk management program is an important step in managing this challenge. This paper from KPMG International explains that organizations undertaking the effort should begin by assessing how well they are managing fraud risk. Identifying known risks and existing controls is an important first step. Then the organization can determine its ideal future state, perform a gap analysis, and prioritize activities that will help enable the development of a company-specific antifraud program.
The subject of outsourcing is a key focus for the financial industry. When implemented properly, outsourcing has proven its potential for lower costs and increased flexibility. Outsourcing can be an extremely effective means of reducing costs while at the same time maintaining - or even improving - standards of service. Regulators are increasingly recognizing the risks of outsourcing and will take action to protect customers. The primary requirement from a regulatory and corporate governance perspective is a strong risk control framework throughout the lifecycle of the outsourcing.