ORGANISATIONS that rely on outsourcing to reduce costs should also consider ways to monitor the progress and implementation of their outsourced business, Privasia executive director Douglas Brown said.

Privasia is a Malaysian provider of business process / information technology (IT) outsourcing and spend management services.

Brown said in most cases, companies transfer a part of their non-core business to an outsourcing partner without any mode of evaluating and monitoring what goes on after that.

He said Privasia's approach to outsourcing combines the cost-savings, risk reduction and improved productivity of traditional outsourcing with a governance and monitoring system to actively manage performance.

"For example, the IT outsourcing services provided by Privasia include the responsibility for mainframe, midrange, desktop, network, facilities and help-desk infrastructure functions," Brown said in a statement.

He said with a comprehensive outsourcing structure in place, an organisation can focus its attention on improving its main core business.

Other compelling reasons for outsourcing include controls over capital cost, increase in efficiency, reduced labour cost as well as risk reduction.