6 Essential Metrics To Measure Your Outsourcing Projects
“You can’t manage what you can’t measure.”
It’s an old saying.
But it’s true—especially when it comes to outsourced call center & tech support projects.
If you want to gauge the full impact of outsourcing a tech support function, for example, you must be able to measures its progress. Otherwise, it’s all for naught.
Some managers gauge progress based on just one set of numbers: their SLA metrics. This is a necessary effort.
But savvy managers also gauge projects based on process enhancement—an equally telling set of criteria.
Combing these assessments reveals a provider’s overall performance—one of the most critical keys to achieving project success.
More Than Cost Cutting
Outsourcing projects can help you cut costs, increase productivity, boost customer satisfaction and differentiate you from the competition—all are key business goals.
But to achieve these goals you must do four things:
- Set clear project goals and objectives
- Foster a “holistic” approach to outsourcing
- Take advantage of technology
- Create strategic partnerships with your providers
Research shows that business that do these things enjoy outsourcing success. Creating a strategic partnership is among the most critical of these four steps.
Among the keys to creating—and maintaining—a strategic partnership with providers is accurately assessing their performances.
What To Measure?
When it comes to gauging provider performance you can measure a provider’s capability and/or process enhancement/output.
To gauge provider capability, think of metrics based on the quality of service delivered and its associated costs. These metrics would include things like SLA compliance, staff expertise, and exception handling ability.
To gauge process enhancement, think of metrics based on process improvements and its associated costs. These metrics would include things like overall efficiency, value added to service processes, and reduction in time to market.
Use A Balance Scorecard Approach
Many managers use a balance scorecard approach to measure both a provider capability and process enhancement at the same time.
A typical balanced scorecard approach covers these six areas:
Metrics associated with this category include total cost of ownership (TCO), change in operating expenses, reduction in infrastructure costs, increase revenues, and return on investment (ROI).
Metrics associated with this category are quality indicators. The most critical measure is overall customer/user satisfaction. Other metrics in this category include things like accuracy, reliability, and availability. Security of tasks and documentation also fall into this category.
This category include metrics that focus on operational expertise, agent adaptability, increased productivity, and response rates
Communication and collaboration are the keys here. Metrics in this category reflect things like timely, open, and impartial communication. They also reflect intangibles like problem solving, conflict resolution, and positive interaction.
Metrics associated with this category include alignment with goals and vision, meeting outsourcing objectives, and competitive advantage.
This category includes metrics that reflected quality of training and improvement programs as well as increases in employee efficiency and jumps in corporate growth.
Using a balance scorecard, savvy managers evaluate and assess provider performance (and project status) regularly. If you’re smart, you will to.
Every Business Is Different
Keep in mind that every company is different. So the specific metrics you choose in these six categories will depend on what matters most to your company.
Measuring a provider’s performance on outsourcing projects accurately helps create a strategic partnership with your provider.
Developing this relationship is a key step in executing successful outsourcing projects that produce tangible business results.
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