As compliance regulations continue to grow, organizations struggle to stay compliant. Some of the challenges relate to staying on top of frequently changing regulations, making sure documents and procedures are accurate and up-to-date, and staying ahead of new regulations in different territories. As a result of the increased complexity, many companies are rethinking how their legal department should function.
In fact, many companies have decided to outsource these complex compliance issues to outside firms. According to findings in IDC’s Modernization of Corporate Legal Spend survey, sponsored by CT Corporation, outsourcing has become a very cost-effective way to handle the rise in compliance costs. Almost 60 percent of respondents say that outsourcing compliance issues saves their companies the productivity of at least 21 employees. An additional survey of 750 risk and compliance practitioners in financial services worldwide, entitled “Cost of Compliance Report 2020”, found more than a third of practitioners had outsourced some or all compliance functions last year.