Measuring success in IT Outsourcing projects: how to demonstrate the value of your investment

When carrying out and managing any type of project, it is vital to have indicators that allow us to understand whether we have met our objectives; Therefore, in this article we will address the measurement of success in IT outsourcing projects.

What is success measurement in IT Outsourcing projects?

In any type of business the evaluating results objectively is the only way to determine whether a project has been a success or a failure. In this sense, when we are preparing any kind of action or test we must be able to identify those key indicators that will allow us to obtain these data;

Not having the information properly recorded and stored will be a huge waste of time and resources of all kinds; This, in a business context that is going faster and faster due to digital transformation, will result in a huge lag behind the competition;

Currently, what is important in the measure of success in IT outsourcing projects is to have a standardised process that can be implemented quickly. This makes scaling up any type of business much easier and more profitable; In this video we show an example of how it is possible to optimize candidate selection processes for any type of vertical. Human talent is one of the most differentiating factors in all sectors;

Key indicators in measuring success in IT outsourcing projects

Once we are aware of the importance of controlling these aspects in any project, we are going to explain some of the key indicators that we cannot forget. The most prominent are the following:

1. Productivity

When any type of action is planned, resources are allocated some resources in order to achieve certain objectives. Productivity metrics can be used to establish a relationship between the effort expended and the budget allocated to it; There is also a lot of related information such as compliance with delivery dates or the performance of each worker;

In this way, it will be possible to know whether it is worthwhile to continue investing in this project, or whether it is better to use these forces for something else;

2. Follow up the project

The figure of the project manager can be full of complexities. When designing any type of project, goals are set using the SMART methodology; In this way, objectives are measurable and, a priori, achievable; However, in the course of doing all the actions that make up the plan, unforeseen events may occur;

For this reason, it is very important that everyone managing a project makes a comparison of what is the current situation where we are compared to initial forecasts. With all this information it is possible to make decisions such as adding more resources to make up for lost time or making changes;

3. Quality and customer satisfaction

In businesses aimed at the end customer, the costumer service must have very clear indicators. The main purpose is to ensure that consumer satisfaction is optimal; This has a direct impact on the loyalty and sales ratio we can achieve;

In this case, if we do projects, optimal delivery of the final work must also be measured. On the one hand, it is necessary to check that delivery deadlines have actually been met; On the other hand, it is vital to conduct a survey to gather feedback and feedback from the other party.

4. Costs

Being able to measuring costs effectively and accurately is paramount to the health of any company’s treasury. This is even more relevant in all projects where the margin is tight; Therefore, before giving the green light to work, all the budget items to be allocated must be well defined;

Once the project is up and running, managers have to closely monitor that every week and month they are spending below the limit;

5. Profitability margin;

Finally, although this measuring success in IT outsourcing projects is related to costs, it is also fundamental to measure the profit margin to obtain the investment value. This is nothing more than the difference between what we have invoiced and what we have spent;

In fact, it is a great help for every company when making budgets in the future. Perhaps initially the margins are too tight to go to volume; Once our brand positioning is stronger we have the opportunity to raise our prices;

How to evaluate the results of an outsourcing project

Once we have in mind the most important indicators to consider for measuring the success of any project, it’s time to understand how to evaluate the results. In any outsourcing project, a service that a company has decided to outsource is carried out;

Therefore, it is vitally important that we maintain fluid communication with our clients. In the end, a good job will be one in which these barriers between companies are not noticeable; You need to have a deep understanding of the objectives you want to achieve and what your roadmap is; From here, once the project has been completed, it is important to determine whether the objectives have been met; If not, know the reasons for this and how to correct it; On the other hand, if they have finally been fulfilled, it is also essential analyse whether it is possible to improve results in the future. An analytical and data-driven methodology is what is needed in these cases;

At Pasiona we are experts in project management. In conclusion, measuring success in IT outsourcing projects is a major key to scaling up any business and implementing a workflow automation process.