How do you track the performance of your third-party/outsourced partners?

1.8k views1 Upvote23 Comments

Executive Architect in Healthcare and Biotech, 10,001+ employees
Establish metrics corresponding to business parameters such as revenue or service level targets.  Ensure there are rewards as well as penalties associated with metrics.  Be prepared to quantify impact of partners to customer ratings such as NPS.
Director ERP Management in Travel and Hospitality, 1,001 - 5,000 employees
Quarterly review of all the tickets and projects is performed for time/speed, quality of work, whether within budget and business impact if any. The budgeting and time factors are usually important for new projects. The business impact is most important for the tickets related to system outage, emergency change implementations or user down time.
Director of IT in Healthcare and Biotech, 10,001+ employees
A set of mutually agreed CPIs and KPIs are included in the contract. They are reviewed in Monthly Operating Review and Quarterly Business Review. Corrective actions of financial penalties applied based on those review. 
HEAD IT in Consumer Goods, 501 - 1,000 employees
Managing the third party or outsourced partner starts from the day agreement is signed between parties.  In agreement all SLA /KPI and penalties related to each SLA & KPI must be well-defined in tangible made. All responsibilities between both parties must be well written. All SLA/KPI and other deliverables must be reviewed by all stakeholders at regular intervals and all payments must be linked with a signoff document done by the team and key stakeholders.
IT Strategist in Government, 1,001 - 5,000 employees
As a government organization, the only and preferred method is well defined Statement of Work tied with deliverables schedule.   
VP of IT Audit in Services (non-Government), 10,001+ employees
Same as you measure in-house resources...define and agree to goals, objectives, metrics, KPIs, etc. etc. and then routinely review.
Sr. Managing Director in Finance (non-banking), 5,001 - 10,000 employees
- based on an agreed upon matrix
- Service Level Agreement penalties or credits
- periodic meetings to review open issues, incidents , SOWs
- establishing escalation paths
- Annual Vendor reviews

VP of IT in Real Estate, 5,001 - 10,000 employees
Mutually agreed KPIs and deliverables are essential. I think it is no different from measuring the performance of regular employees. 
Manager in Construction, 51 - 200 employees
We utilise a similar method as we do with any of our resources. We have a set of defined metrics and  goals, which we regularly check and ensure they are meeting the expected objectives and KPl. We then flag any issues part of a regular scheduled meeting review. 
Solutions Architect in Software, 51 - 200 employees
All partners are completely involved in our internal processes (SCRUM: daily stand-up, retro, review) so all of their tasks are monitored and tracked exactly as our internal processes.

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CTO in Software, 201 - 500 employees
Without a doubt - Technical Debt! It's a ball and chain that creates an ever increasing drag on any organization, stifles innovation, and prevents transformation.
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