Statement of Key Deliverables | Outsourcing

These deliverables must relate to volume, training and quality of the output (see examples below). Importantly:

• These deliverables have to be buttoned down; otherwise ambiguities will later become apparent.
• If existing performance definitions do not exist, you need to establish a baseline through stakeholder perception analysis or by linking expected performance to benchmark performance of other service providers.
• Establish clear contractual key performance indicators (KPIs) to define the expected level of operational performance from the contract 
• Consider contractual measures for dealing with success and failure; that is, withholding payments as service levels fall or providing bonus payments if performance levels improve. Whatever the regime, a regular reporting schedule is necessary, including indices of performance and progress meetings.
• There should be an escalation clause in the contract to resolve disputes and ultimately terminate the contract if things have degraded to a profoundly unsatisfactory level.

Service item	Service descriptor	Service measure
Resourcing services	Permanent employee — time from receipt of an approved hiring request form to offer acceptance	Average time to offer acceptance: within 20 business days
Resourcing services	Non-PAYE contractor — time from receipt of an approved hiring request form to offer acceptance	Average time to offer acceptance: within 6 business days
Learning services	L&D projects customer satisfaction	90% customer satisfaction based on post delivery survey
Reward services	Action authorised contractual salary adjustments by agreed cut off dates	90% of adjustments to be processed accurately for pay runs
Reward services	Ensure statutory compliance in all processes	100% compliance

Figure 1: Illustrative contractual KPIs