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What Are Beginning Metrics for an Offshore Outsourcing Engagement?

January 15, 2011 • IT Service Management, Key Metrics Application Outsourcing - What to Measure!, Offshore Outsourcing, Service Metrics

At Computer Aid, we have a saying that you can’t evaluate what you can’t measure. We’ve developed a whole series of measurements for our onshore teams that we regularly report to customers. But what metrics should be reported when there is an offshore team involved?

In his article “Tips, Tricks and Traps of IT Offshore Outsourcing”, Nick Krym provides a list of both application support and application development metrics. We will only focus on the application support metrics, because that is a focus of our blog. But we encourage you if you’re interested to review the article for his list of application development metrics.

He recommends the following measures be reported to customer management monthly with associated reasons:

  • Average turn around time for issues by priority: This metric ensures service level agreement (SLA) compliance.
  • End-to-end response time for issues by priority: This metric ensures SLA compliance.
  • Resource utilization: Helps the service provider and customer understand resource utilization and allocation, as well as team effectiveness.
  • Defect removal efficiency: This generic QA metric helps evaluate the quality of the deliverables.
  • Effort to Actuals variance: This metric evaluates the estimating process and ensures SLA compliance.

We think he has oversimplified the measurements, and there is so much more on which an offshore team can be measured. For our offshore outsourcing application support projects at Computer Aid, we use our Tracer tool just as we do for onshore engagements to track and measure our progress. Although it is customizable, it typically tracks nearly 30 service level goals and provides nearly 60 different metrics reports.

So what do you think? Should offshore teams be held to the same metrics as onshore teams? What metrics should offshore teams be evaluated against? Share your thoughts with us.

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4 Responses to What Are Beginning Metrics for an Offshore Outsourcing Engagement?

  1. pudin says:

    Spot on. ITIL is a load of old Tripe. ITIL is a fwremaork but it is common sense. We have stopped all ITIL training.Peer to Peer learning and focus groups have delivered better and more measurable success in the last 6 months than ITIL did in the last 5 years.This helps our staff feel more rewarded as they are changing the way we operate. We also add in a manager from the business side to put the business perspective.ITIL provided a base due to adoption which we would have done anyway over that time period.I urge IT departments to leave it behind, take what you find useful and move on using the skills you have in house. Leave the name ITIL firmly behind

  2. Bob Anderson says:

    ITIL is simply a framework for good IT Service Management – The detail is where you get the benifit by using what is appropriate to your business situation. Don’t be too confused by all the high sounding words, in the end is the application of common sense making sure you deliver what you promise. And if you are not promising anything to your users – shame on you – you should. How do you know if you are really helping them with your serivces. Bob

  3. […] He recommends the following measures be reported to customer management monthly with associated reasons: Continue reading “What Are Beginning Metrics for an Offshore Outsourcing Engagement?” » […]

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