BizAnalyst Network: The Real Costs of SOX Compliance and Outsourcing

Wednesday, March 08, 2006

The Real Costs of SOX Compliance and Outsourcing

The decision to outsource rests on much more than saving money, but lower costs are always part of the equation. This article examines whether, from the Indian ITeS perspective, Sarbanes-Oxley compliance will add to the cost of outsourcing, whether outsourcing will suffer because of any higher costs (real or perceived) associated with SOX compliance, and which types of outsourcing SOX compliance will affect the most. According to this article, the Sarbanes-Oxley Act will most likely add to the costs of certain types of outsourcing, and companies will need to be forward thinking in addressing who should cover those costs (vendor or client). But there ways in which outsourcing may actually reduce the costs of SOX compliance, especially when both involved parties are working together to facilitate the compliance effort. The fact remains, however, that the examination of true SOX compliance costs is still in its nascent stages, and as companies grapple with SOX requirements through outsourcing more and more information will be available on how this new development will affect the outsourcing market as a whole, as well as in India.

Full Article
http://ct.itbusinessedge.com/t?ctl=DA874D:3C5015E