INSIGHT
Managing Sarbanes-Oxley Act (SOX) compliance in-house can strain your resources as regulatory requirements evolve and your business grows. SOX compliance outsourcing offers a scalable solution that improves efficiency, reduces risk, and frees internal teams to focus on higher-value work.
Assess Your Current SOX Framework’s Strengths and Weaknesses
Before deciding to outsource or co-source, you need a clear picture of where your current approach stands. Many organizations find their existing tools and processes haven’t scaled with business growth or adapted to evolving compliance standards. Third-party providers bring objective oversight and can identify blind spots that internal teams might miss.
Ask yourself: Are we confident that we can identify all potential gaps and vulnerabilities in our current SOX framework?
Determine the Right Scope for Your Organization
SOX compliance outsourcing can look different, depending on your needs. Consider your organization’s unique footprint, including geographic locations, business segments, and operational complexity. The size and maturity of your compliance program will influence whether you need comprehensive support or targeted assistance.
A qualified outsourcing partner can tailor their approach to your specific needs, whether managing your entire SOX program or augmenting your existing framework with specialized support in areas like technology controls, documentation, or testing.
Ask yourself: Do we have a clear understanding of how to address SOX complexities across all our departments, regions, and business units?
Evaluate the Technology and Experience Gap
Modern SOX compliance requires sophisticated technology and deep regulatory knowledge. Governance, risk, and compliance (GRC) platforms integrated into outsourced solutions offer:
- Centralized control testing and documentation management
- Automated workflows that reduce manual errors and save time
The regulatory landscape shifts constantly and staying current requires dedicated focus. Outsourcing gives you access to professionals who specialize in SOX compliance and actively monitor industry changes, bringing specialized knowledge that may be difficult to develop and retain in-house.
Ask yourself: Do our current technology and team capabilities support the level of sophistication our SOX compliance requires?
Consider the Cost-Benefit Analysis
Managing SOX compliance internally involves significant overhead. These additional expenses can be unpredictable and tend to increase as your business grows.
Outsourced SOX solutions typically operate on more reliable pricing models that provide greater budget certainty. You gain access to enterprise-grade technology and specialized professionals without the capital investment, while reducing technical debt and freeing your finance team from repetitive manual tasks.
Ask yourself: Can we achieve better cost predictability and resource allocation by partnering with a SOX compliance provider?
Understand How Co-Sourcing Can Bridge the Gap
You don’t have to choose between fully in-house or completely outsourced compliance. Co-sourcing offers a flexible middle ground where you maintain oversight while leveraging external support for specific functions.
Co-sourcing allows you to offload complex tasks (e.g., detailed control testing, documentation management) while keeping strategic decision-making in-house. This model helps during periods of high demand or organizational change, providing scalable support that adapts to your needs.
Ask yourself: Would a co-sourcing model allow us to address our most pressing compliance challenges while maintaining control over strategic decisions?
Recognize the Strategic Value Beyond Compliance
Forward-thinking organizations view SOX compliance as more than a regulatory obligation. Your compliance program generates valuable data about business processes, internal controls, and operational risks.
Outsourcing helps you unlock this strategic value:
- Frees your finance team from administrative burden to focus on analysis and insights
- Improves employee satisfaction by reducing repetitive manual tasks
- Transforms compliance data into actionable intelligence for business decisions
- Strengthens overall organizational performance and risk management
A well-managed SOX program supported by the right outsourcing partner becomes an asset that strengthens your entire organization.
Ask yourself: Can we leverage our SOX compliance program to create strategic value and competitive advantage?
Learn More About our Sarbanes-Oxley Compliance Services
Making the Decision to Outsource SOX Compliance with BPM
The decision to outsource SOX compliance depends on your unique circumstances, but the benefits are clear: improved efficiency, reduced risk, greater budget certainty, and freedom to focus on strategic priorities. Whether you need comprehensive support or targeted co-sourcing, BPM can help you design a solution that positions your compliance program as a strategic advantage.
Paul Bansal
Managing Director, Assurance
Paul is the Managing Director of BPM’s Risk assurance practice. He has over 17 years of public accounting experience, primarily …
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