1. Risk Security Assurance Reliability Controls Outsourcing Outsourcing from an AUDITOR point of view

2. Advantages Disadvantages Points to focus Agenda

3. Concentrate on Core Business Skilled manpower at lower rates Advanced technologies at lower rates Tax benefits Increased productivity Beat Competition/competitive advantage Shares the risks Improves service quality Frees up cash flow Advantages

4. Disadvantages Points to focus Agenda

5. The fear of the service provider ceasing to trade (bankruptcy, etc) You may lose control of the processes Confidentiality of data might be a problem Availability of data is depending of the quality of the service Creates potential redundancies Other companies may also be using the service provider. Therefore in some cases, the best interests of the service provider may be diluted with other users Disadvantages

6. You may lose focus of the customer and concentrate on the product (the outsourced process) The loss of talent generated internally Employees may react badly to outsourcing and consequently their quality of work may suffer Disadvantages

7. Advantages Disadvantages Points to focus Agenda

8. How to choose an outsourcing service provider Data ownership Data confidentiality Data availability and integrity Service level agreement Business continuity planning/Disaster recovery planning/Recovery from operational failure Timely assess the service providers quality of service and continuity of the activity in case of a disaster Points to focus

9. Comments/Questions

10. Cristian Goiceanu, PhD, CISA Technology & Security Risk Services cristian.goiceanu@ro.ey.com ERNST & YOUNG