Etymology of Tasks Outsourcing KPI

The business community has fully embraced the use of balanced scorecards and metrics to determine if businesses are performing well. This is also a common practice in outsourcing. The gist of this management approach is that the business managers will be able to gauge if the performance of the employees are in line with the company’s goals and objectives, not only in terms of actual activities, but also in financial merits. As such, there is a need to develop tasks outsourcing KPI methods or standards to ensure that all possible causes for poor and good performance are identified.Outsourcing is not new, albeit it has become a buzzword by now. Simply put, outsourcing is a business strategy in which a company passes certain tasks to other companies on their behalf. This way, the company can focus its resources—finances, manpower, technology—on other things that can help it grow. Most of the time, the tasks that are outsourced are seemingly mundane tasks that do not really require full attention from the company, like hiring, payroll, etc.Few people realize that the clothes they wear are not really manufactured by the brand name that sells it. Also, few people know that if they call customer support for their electronic gadget, it is not the actual company that answers the call. In reality, many branded products outsource their manufacturing task to other companies. All they need to do is to provide the outsourcer the quality standards, processes, and methodologies to get the job done. Usually, outsourcing is done outside the United States because the labor is cheaper in third world countries. This is the reason for customer service associates who seem to have a very thick accent. It is because they are not in the United States, but somewhere else.There is a big difference between outsourcing and off shoring. Outsourcing is passing the tasks to another company. Off shoring, on the other hand, is a management approach in which the company builds a facility outside the United States. This is deemed necessary to cut costs on the part of the company. As mentioned earlier, labor cost is a lot cheaper in other countries because the dollar has higher value.A KPI, on the other hand, stands for Key Performance Indicator. These are metrics in place to allow managers to measure the performance of their employees and the business in general. The measured metrics are put in what is called a balanced scorecard or dashboard. This is a report that shows managers the general health of the business.Outsourcing is not an easy undertaking. It needs a lot of preparation and the proper expectations should be set. If this is not done right, the company that receives the outsourcing business will have difficulties meeting the standards of the company that outsourced. Tools and equipment are all essential to achieve the goals. Training is also something that will significantly impact the output of the employees in the outsourcing industry. These are only few of the tasks outsourcing KPI metrics that need to be considered, for there are many more.