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Why Tracking the Right Metrics is Important in Outsourcing?

By August 3, 2022March 14th, 2024No Comments
Outsourcing Data Entry Back Office Metrics Blog

Outsourcing has become widely adopted by businesses across industries due to its effectiveness and flexibility. A few benefits of outsourcing include reduced cost, increased productivity, improved client satisfaction, and operational efficiency.

However, tracking the right metrics for outsourcing companies is crucial to effectively measure such outsourced services’ success.  

When businesses outsource work that requires special skills and expertise, they must track the metrics of their vendor performance. This will help them assess the value they get in return for the financial investment they make.  

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Why is it critical to track the correct metrics in outsourcing?

Tracking metrics are essential because they allow companies to:

1. Track the progress

Tracking the progress ensures that companies know what is happening in the project at any time. Companies need to know how much time has passed since the project was assigned to the team and what stage it is now.  

2. Examine whether processes align with the project’s objectives

The second thing why tracking the right metrics is essential is because companies need to look out for whether the processes followed by the team are aligned with the project’s objectives.

3. Identify loopholes and resolve

If the processes are not aligned with the project’s objectives, then companies need to identify the loopholes in the processes and rectify them. They may even want to consider changing the processes altogether. 

4. Check the quality of the work

Companies need to ensure that the quality of the work is good enough. If the quality is low, then they need to take action immediately. 

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What indicators are used to assess the performance of outsourcing companies?

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1. Customer service level

The customer service level is an essential key performance indicator (KPI) that assesses the outsourced team’s ability to provide standard service to the clients. This metric’s frequent criteria include average response time, resolution, and abandonment rates.

2. Quality maintenance

One of the most critical aspects to examine is quality maintenance. Quality maintenance ensures that the quality of work delivered to the client remains consistent throughout the relationship.

3. Timeliness

Another essential metric to measure the outsourced partner’s performance is the project’s timeliness. 

A project manager would keep track of the progress of each phase of the project to ensure that deadlines are met.

4. Process

Process metrics are concerned with efficiency, examining how tasks are completed by comparing systems and procedures to goals. 

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When a corporation carefully follows a well-defined methodology system with the extent of quantitative and qualitative elements, the smooth flow of business activities can be secured.  

Metrics and figures are not the only ways to assess the performance of an outsourced service. The working relationship with the outsourced team members might reveal about the project. Thus, frequent communication and transparency between the service providers and clients must be frequent.

ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs.  For more information please reach out to us  at or call us at 908-359-2600.