Study: Outsourcing Boosts Compliance, Internal Controls

While concern over regulatory issues has often been a barrier with regard to outsourcing financial functions, a number of companies that have outsourced those jobs indicated that they now have tighter control over governance and compliance, according to a survey from consulting giant Accenture. Some 43 percent of the executives surveyed who currently outsource a finance process said that outsourcing had improved the quality of governance and compliance at their organizations, and 44 percent of the same group indicated that outsourcing had no adverse impact on governance and compliance levels. Accenture commissioned the survey of more than 200 executives to determine whether loss of control remained an issue for executives in the face of more stringent compliance standards -- both mandated and voluntary. 73 percent of respondents who outsourced a financial process said that outsourcing increases "the rigor of business processes because they're better defined and documented." In addition, 56 percent of those polled said that outsourcing providers are better equipped to deal with frequent changes to tax codes and accounting rules, while also providing an increased level of visibility into processes and transparency of information.