Criteria for Performance Evaluation of Offshore Projects – The Changing Dimensions

As the outsourcing industry matures, there is a growing recognition that a more holistic evaluation of outsourcing performance is required. The parameters and the criteria for evaluation would change in a long-term strategic oriented outsourcing partnership. This paper attempts to examine how performance measures used by customers change during a long-term partnership. It is an exploratory study to understand the evolution of metrics in a long-term partnership from a vendor perspective. In-depth interviews were conducted with key managers from vendor organizations in India who have been in the business of outsourcing for over 20 years. The findings indicate that there has been a change in the performance metrics and evaluation criteria over the period. While these changes in criteria have evolved over time in mature partnerships, many new partners are attempting to introduce the metrics into projects at an early stage resulting in a more holistic evaluation of outsourcing.