The practice of outsourcing, or contracting out one or more elements of an organisation’s operations, has become widespread as large organisations seek to reduce costs, leverage technological expertise or improve customer value.

We believe that internal audit has a key role to play on providing assurance over outsourced services, from simple customer-supplier relationships to complex, global supply networks.

Read our guidance on auditing business functions

Internal auditors will at some time or another review most if not all business functions, including outsourced services.

Outsourcing and the role of internal audit

Our new report outlines a number of approaches in the private and public sectors to managing the risks associated with those supplier relationships, including the practices of internal audit functions. As part of the report we learned about the approach taken towards auditing contracts taken by a number of organisations including the BBC, EDF Energy, Crossrail, Ministry of Justice and the Home Office.

Read the research report and case studies

Read the board briefing

Technical conversations

Hear Chris Baker and Papiya Chatterjee talk about the key risks of contract management and outsourcing and what part internal audit has to play in this area.