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5 Key Performance Indicators in Business Process Outsourcing: How to Gauge Success

Measuring the success of a Business Process Outsourcing (BPO) firm is all about setting the right expectations and measuring performance against key performance indicators. When businesses outsource their processes, they expect to see improvements in efficiency and productivity. However, it can be difficult to determine whether or not your outsourcing initiative is successful.

What is a Key Performance Indicator?

KPIs have been a long-time staple in the business world, and for good reason. They’re an excellent way to gauge your company’s overall performance across all three crucial areas: financial success; strategic achievements (ie growth); operational accomplishments such as cost-cutting or increased productivity.

Key performance indicators in BPOs

Your KPIs allow you to take stock of where things stand with both short term objectives set by management teams alongside their longer-term goals – this helps ensure that there isn’t any confusion about what needs doing when it comes down to making sure everything gets accomplished properly!

Why KPIs are important:

Key performance indicators are metrics you can use to measure and track the performance of your teams in a way that ensures they are supporting overall goals. Here’s why KPIs matter so much for businesses everywhere:

Keeps teams aligned:

Team work

KPIs are a great way to keep teams aligned and on track with their projects. Whether you’re measuring employee performance or project success, this will help ensure that everyone’s work together as one unit throughout the entire process!

Provides a health check:

By looking at key performance indicators, you can get a realistic feel for the health of your organisation. You will be able to see risk factors and financial issues that may affect it in the years to come before they become problems!

Allows finetuning:

Keep your eye on the prize: Your KPIs help you keep track of what’s working and figure out where adjustments need to be made.

Increases Accountability:

It is important for employees and managers to be able to share their progress with each other. Managers should create performance indicators (KPIs) that help the team members see how they’re doing in relation to others on the same level or above them, while also helping motivate people towards reaching these goals as well!


Key performance indicators are of different types. Some are used to track monthly progress against a goal, while others have an extended timeline and focus on longer-term goals for success over time rather than just this month alone. There’s one thing all key performance indicators share: they’re tied directly to strategic objectives so it is important that these numbers be closely monitored as well! 

Here are five of the key performance indicators to track when outsourcing any process: 

1. Cost efficiency – How to achieve the same or better results at a lower cost? 

The saying “time is money” has never been more appropriate than when it comes to business process outsourcing.

When you outsource your day-to-day tasks, the time saved from doing them yourself can be used for other purposes that are important and beneficial in any company or organisation – like investing back into growth!

The use of professional services helps a company save time and money. These companies are able to hire experienced professionals at low costs, who can provide expert execution for their work in a quick and efficient manner.

2. Quality of output – Does the output meet predefined quality standards? 

The BPO industry is a natural home for those who seek to improve business processes. The providers in this space have the expertise and know-how necessary not only to implement new strategies but also to optimise existing ones, all while completing projects on time with high-quality standards maintained throughout each process step, measured on the basis of key performance indicators!

3. Speed of execution – Are tasks being completed within agreed timelines? 

BPO companies have a wide range of experience in different fields. They’re able to perform at the highest level because they use best practices and utilize cutting edge technology, which inevitably leads them towards greater efficiency than other firms who may not be using these same techniques or technologies could hope for!

The business process is the core of their work and they do it with greater accuracy, efficiency or speed.

4. Scalability – Can the BPO solution be scaled up or down as needed? 

We all know how much technology has changed the way we live our lives. Technologies like automation and artificial intelligence are making waves in every industry, including BPOs! This means that if you’re looking for a company with cutting-edge skillsets then it’s important to find one who invests heavily into these sorts of technologies.

This is because they’ll be able to offer their customers access at lower costs than ever before while also improving speed efficiencies which will lead them towards increased productivity levels overall.

5. Security and privacy – How well is sensitive data being protected?

The data management industry is booming, and as a result, there have been many advancements in how companies manage their records. One thing that has not changed though? The importance of employing professionals to guarantee nothing goes wrong with your information!

Data security

That’s where BPO firms come into play; they offer additional security measures like encryption software designed specifically for those who work within these fields so you can rest assured knowing everything will be safe no matter what happens at any given time – even if something were somehow hacked right off our servers (which isn’t going happen).

The first step to measuring the success of a BPO initiative is setting expectations upfront. What are your goals for this project? How will you know when it’s successful?

Once these questions have been answered, it becomes much easier to measure performance against key indicators that align with those objectives. Regardless of what metrics are being tracked, the ultimate goal should be focused on helping improve business outcomes and streamlining processes—not just cutting costs or generating more revenue.

To learn how Boombirds can help your organisation become leaner, faster, and better equipped to serve customers in today’s market SIGN UP NOW!

Having the right performance metrics in place is key to a successful BPO engagement. But it doesn’t stop there. You also need to nurture a culture of excellence and accountability with your service partners, so that everyone is constantly working towards meeting and exceeding your expectations. This is where your KPIs can come in handy.

Are you using the right performance indicator KPIs to measure the success of your BPO engagements?

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