A Balanced Scorecard Framework for IS Outsourcing Metrics

Abstract:      

As the nature of IS outsourcing contracts has changed from simple cost saving projects to strategic initiatives, the focus of the control and measurement processes has also changed. However, cost savings are still the most important metric. We adapt the Balanced Scorecard framework to apply in outsourcing contracts, arguing for a comprehensive mix of 'lead' and 'lag' indicators of contract performance. We propose a survey to map the metrics to be used for different outsourcing projects.

Keywords: outsourcing, metrics, balanced scorecard, information systems