Strategic alignment and performance measurement in outsourced business processes: A comprehensive analysis of Key Performance Indicators (KPIs) and streamlining strategies

A dearth of studies has been conducted to figure out the positive spin-offs of outsourcing services by organizations. Most studies are focused on establishing the relationship between outsourcing and financial efficiency. However, outsourcing has benefits that reach beyond financial and operational efficiency. This study was aimed at examining the progression, utilization, and synchronization of key performance indicators (KPIs) to optimize the outsourced services. Specifically, the study aimed at evaluating the efficiency of KPIs used to measure the efficiency of outsourced services, evaluating tactics used by organizations to align their objectives with outsourced services, and assessing the difficulties experienced by organizations in their attempt to optimize outsourced services. To achieve its objectives, the research employed qualitative, quantitative, and content analysis to collect data. Further, the study applied thematic analysis and inferential statistics to derive conclusions from the data that was collected. The analysis indicated that there is a strong positive correlation between performance metrics and success of outsourced services. Additionally, strategic alignment emerged to be an important factor in the success of outsourcing. Also, the findings indicated that alignment of key performance indicators with strategic objectives results in success of outsourcing. The study concludes that performance metrics, strategic alignment, and key performance indicators are determinants of outsourcing success.