This week we highlight KPMG’s audit committee survey findings on challenges and priorities in the year ahead. It’s hardly surprising that most audit committees point to risk management as the top challenge, given expectations for slow growth and economic and political uncertainty in the US and around the world, technology advances and business model disruption, cyber threats, continued regulatory scrutiny, and investor demands for transparency.
This week, we found KPMG’s report on the state of outsourcing and services to be particularly compelling. Disruption is the name of the game in outsourcing today, as it is in virtually every other segment of the global economy. This piece discusses the watershed moment in outsourcing, where buyers are looking for true value over simply cost reduction, and knowledge creation over mass collection of unstructured data. Much of this is, unsurprisingly, being driven by the shift to cloud computing and “as-a-service” delivery.
Earlier this month, we took a look at the terms and conditions that are “market” in outsourcing deals today. With the move to cloud-based solutions, the need for strong negotiation on the correct terms and conditions is brought into sharper focus.