Check the Performance of Outsourced Tasks Using KPIs From Scorecard
Outsourcing basically means subcontracting a task or a process to a third party with a view to reduce costs and to concentrate only on the core activities of the business.
It becomes extremely crucial that the outsourced tasks are to be evaluated and special attention is paid to areas which are lacking behind. KPIs are quantifiable measures to analyze the performance of outsourced tasks.
KPIs for evaluating outsourced tasks can be clustered in 4 perspectives-financial perspective, service quality, strategic perspective and operational efficiency.Financial perspective analyzes the various cost and savings associated with outsourced tasks.
It includes KPIs such as percentage savings in operating costs, percentage increase in revenues, percentage deviation from planned ROI and percentage savings in infrastructural costs.
Service quality perspective help in judging the quality of the outsourced tasks. It consists of KPIs like percentage of projects timely delivered, accuracy of tasks, privacy of tasks and documentation.
Strategic perspective includes KPIs like number of strategically aligned goals, number of competitive advantages derived, employees cooperation and number of non-core processes outsourced.
This perspective indicates the long-term prospects achieved through outsourcing.Operational efficiency comprise of KPIs such as continuous update, creative solutions, operational expertise and adaptability.
It combines those KPIs which aids in evaluating the efficiency of outsourced tasks.
Why do business professionals choose ready-to-use KPIs?
Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
- Can a business professional research KPIs on his own?
- How do I avoid typical problems with KPIs?
- Is ready-to-use KPI applicable in my niche?
- Is KPIs' price affordable?
- Can KPIs can be easily integrated in any business environment?
- How can KPIs make the difference to the business?
How to align these KPIs with a strategy of our organization?
Ideally, you need to have a strategy (in a form of a strategy map) before you start thinking about the ways to measure its execution (KPIs).
Don't have a strategy map yet? Use free Strategy Map Wizard to create a strategy map for your current business challenges. The wizard will:
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What are the benefits of Tasks Outsourcing metric:
- Outsourcing is about saving costs. So, indicators in this category mostly deal with financial benefits of outsourcing.
- At the same time, it is possible to measure client and employee satisfaction with outsourcing practices.
- Efficiency of outsourcing can be measured through evaluation of such KPIs as projects completed on time, accuracy of tasks etc.
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More ideas on using Tasks Outsourcing KPI
The decision of off-shoring tasks is about asking a third party to carry out the job in place of the concerned organization as the latter is more interested in conducting its core activities. Some other reason for the deciding to outsource tasks can be 'cost-effectiveness' that comes with it.
However, the quality of output obtained is one of the major criteria that determines outsourcer's choice of going with a particular organization.
Heading on, even after a suitable outsourcing partner has been figured out, it is important that a constant check be kept on the process. This might relate to the aspects that are seen significant to 'success of outsourcing operations'.
Winding it up, one can use the BSC (balanced Scorecard) strategy to calculate steps and moves necessary to attain the final objective in the field of 'tasks to be outsourced'.
Tasks outsourcing requires enough study of the subject to spot the right set of indicators. However, once this has been established one can use it to quantify the movements and make better and concrete decisions in case of 'outsourcing tasks'.
The metrics that are selected are worth the trouble taken in colleting them.
More useful information for Outsourcing Evaluation
Tasks Outsourcing Evaluation Balanced Scorecard Screenshots
Metrics for Outsourcing Evaluation
This is the actual scorecard with Tasks Outsourcing Performance Indicators and performance indicators.
The performance indicators include: tasks outsourcing, financial perspective, % savings in operating costs, % deviation from preset roi, % increase in profits, % savings in infrastructural costs, service quality, % of projects timely delivered., accuracy of tasks, privacy of tasks, documentation, strategic perspective, number of strategically aligned goals, employees cooperation, number of competitive advantages derived, number of non-core processes outsourced, operational efficiency, continuous update, creative solutions, operational expertise, adaptability
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