Speedsourcing

It was expected that the current recession would lead to an increase in outsourcing. Sure enough, it's happening. And there's even a name for it - speedsourcing. The idea is that outsourcing agreements are nailed down within a three month period by working out the major issues up front and tying down the details afterwards. Of course, deciding what needs to be done up front and what can be done later is a critical decision, and one wonders how well it is being made.

One of the issues that often gets shortchanged in approaches like speedsourcing is that of proper internal control. It's often not seen as on a critical path and, anyway, the auditors will look at it later.

Mistake.

Poor controls can undermine the whole process and cost heavily in the longer term. Companies had better make sure they cover it off well, preferably by having controls experts involved at the outset. A summary of Speedsourcing is found at the CIO.com site.