Metrics and Incentives are an important component of outsourcing relationships, but as executives use outsourcing more strategically, these become more critical than ever.
In this research study, we found that each type of outsourcing relationship calls for different metrics and incentives to some extent. More importantly, executives also use the same metrics and incentives in different ways to shape the outsourcing relationship they need. Tapping new sources of value means sharing ownership for results with an outsource partner. The more transformational the outsourcing agenda, the more blurred the lines of accountability and control become. Executives who operate at this cutting edge have loosened their white-knuckled grip on control and use metrics and incetives to foster commitment.
Editor’s Note: this is an excellent article with very practical advice – I highly recommend it.
Authors: Alice Hartley, Jane C. Linder, Joseph Sawyer
Source: Accenture
Subjects: Best Practices, Outsourcing / BPO
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