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Performance management of suppliers in outsourcing project: Case analysis from the financial services industry

MacKerron, Grant; Kumar, Maneesh; Benedikt, Andreas; Kumar, Vikas


Grant MacKerron

Maneesh Kumar

Andreas Benedikt


This study investigates the characteristics of an effective performance management framework for outsourcing projects in a UK-based financial services organisation and how this may contribute to the success of the outsourcing arrangement. The analysis draws on outsourcing and performance management theory, and uses both primary and secondary data. Valuable information was found on objective setting, performance measurement and performance improvement in the outsourcing project. An adapted version of the Balanced Scorecard, termed a Logic Scorecard, is suggested as a measurement tool; a service credit system and a continuous improvement schedule used to enhance supplier performance. The performance management framework, which is one of the pillars of the supply chain operations reference (SCOR) model, was developed, and provides practitioners with step-by-step guidance for the implementation of performance management in outsourcing projects. This combines both suggestions for performance management before and after the outsourcing decision, thus considering the entire outsourcing lifecycle. The proposed 10-step framework for outsourcing not only incorporates strategic propositions but also shows its implementation at an operational level.


MacKerron, G., Kumar, M., Benedikt, A., & Kumar, V. (2015). Performance management of suppliers in outsourcing project: Case analysis from the financial services industry. Production Planning and Control, 26(2), 150-165.

Journal Article Type Article
Publication Date Jan 1, 2015
Journal Production Planning & Control
Print ISSN 0953-7287
Publisher Taylor & Francis
Peer Reviewed Peer Reviewed
Volume 26
Issue 2
Pages 150-165
Keywords performance management, outsourcing, framework, financial services, case study
Public URL
Publisher URL
Additional Information Additional Information : This is an Accepted Manuscript of an article published by Taylor & Francis Group in Production Planning & Control in 2015, available online at:


MacKerronetal-PPC-16thAugust2013.doc (483 Kb)

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