A Practitioner's Guide To IT Outsourcing – The Complexities Of Sub-Outsourcing

In the second article of our mini-series 'A Practitioners Guide to IT Outsourcing', Rhiannon Monahan, an Associate Director within our Governance and Consulting Services Group and former Head of Outsourcing Oversight to a number of financial entities, outlines which sub-contractors firms should be focused on, the impact sub-contracting can have on third-party risk and how changes to sub-contracting arrangements should be managed.

Who is a material sub-contractor?

In the context of the Cross Industry Guidance on Outsourcing (the "Outsourcing Guidelines"), firms must have visibility of those sub-contractors to which material parts of a critical or important outsourcing arrangement have been sub-outsourced.