Appendix 12 The relative strengths and weaknesses of different sourcing models are captured below. Sourcing model Pros Cons In-house Continuity of staff MMay not be fully employed function effectively and efficiently Certain and controllable cost Difficult to acquire necessary Full control of the function / maintain all skills and experience to A resource pool for the business meet the risk profile of the business Training ground for employees Need to continually invest in training and development Greater cultural alignment Recruitment hassles Insiders Ineffective / inefficient start up Retention and development strategies required Reduces opportunity to provide fresh perspective / risk of complacency or familiarity Co-source Long term permanent onsite Time taken to recruit HIA presence through HIA Possible cost impact Access to broad range of skills through Management resource needed in the partner recruitment and relationship Draw on specialist skills as and development when, and only when, needed Dependency on 3rd party Continuity through HIA Possible lack of staff continuity Pull in up to date skills and experience Other challenges for in house as needed resource as above Quick to implement Skills transfer to in house team Flexible approach, clearly defined service level and KPI measures Credibility to third parties No or reduced training cost
Appendix 12 The relative strengths and weaknesses of different sourcing models are captured below. Sourcing model Pros Cons In-house function Continuity of staff Certain and controllable cost Full control of the function A resource pool for the business Training ground for employees Greater cultural alignment Insiders MMay not be fully employed effectively and efficiently Difficult to acquire necessary / maintain all skills and experience to meet the risk profile of the business Need to continually invest in training and development Recruitment hassles Ineffective / inefficient start up Retention and development strategies required Reduces opportunity to provide fresh perspective / risk of complacency or familiarity Co-source Long term permanent onsite presence through HIA Access to broad range of skills through the partner Draw on specialist skills as and when, and only when, needed Continuity through HIA Pull in up to date skills and experience as needed Quick to implement Skills transfer to in house team Flexible approach, clearly defined service level and KPI measures Credibility to third parties No or reduced training cost Time taken to recruit HIA Possible cost impact Management resource needed in recruitment and relationship development Dependency on 3rd party Possible lack of staff continuity Other challenges for in house resource as above
12-internal-audit-sourcing-options.docx