Performance measurement system effectiveness in public sector IT outsourcing contracts

A key issue in the successful management of an Information Technology (IT) outsourcing contract is the measurement of the vendor's performance to ensure that all agreed outcomes are achieved. An effective performance measurement system (PMS) provides both control and accountability of the vendo...

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Bibliographic Details
Main Authors: Perrin, Brian, Pervan, Graham
Other Authors: Carolyn Stringer
Format: Conference Paper
Published: Cranfield University 2009
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/29070
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author Perrin, Brian
Pervan, Graham
author2 Carolyn Stringer
author_facet Carolyn Stringer
Perrin, Brian
Pervan, Graham
author_sort Perrin, Brian
building Curtin Institutional Repository
collection Online Access
description A key issue in the successful management of an Information Technology (IT) outsourcing contract is the measurement of the vendor's performance to ensure that all agreed outcomes are achieved. An effective performance measurement system (PMS) provides both control and accountability of the vendor and the contract arrangements. Despite the recognised importance of performance measurement to the overall success of IT outsourcing, a review of the literature highlights that research in this area is very limited. Based on a survey of large public sector organisations and universities throughout Australia, this paper develops and explores a three-dimensional model initially developed by Bouckaert (1993) and later refined by Streib and Poister (1999) to measure the effectiveness of performance measurement systems used in public sector IT outsourcing contracts. This research supports Bouckaert's (1993) proposition that an effective performance measurement system needs to include three essential characteristics : be valid, legitimate and functional. This research contributes to the existing literature on the choice and implementation of PMSs used in public sector IT outsourcing service contracts, and provides some practical guidance to public sector managers on the design of effective PMSs. The results also highlight that an effective PMS is a dynamic process that is not static and should be continually improved
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spelling curtin-20.500.11937-290702017-10-02T02:27:48Z Performance measurement system effectiveness in public sector IT outsourcing contracts Perrin, Brian Pervan, Graham Carolyn Stringer functionality public sector IT outsourcing validity performance measurement systems effectiveness legitimacy A key issue in the successful management of an Information Technology (IT) outsourcing contract is the measurement of the vendor's performance to ensure that all agreed outcomes are achieved. An effective performance measurement system (PMS) provides both control and accountability of the vendor and the contract arrangements. Despite the recognised importance of performance measurement to the overall success of IT outsourcing, a review of the literature highlights that research in this area is very limited. Based on a survey of large public sector organisations and universities throughout Australia, this paper develops and explores a three-dimensional model initially developed by Bouckaert (1993) and later refined by Streib and Poister (1999) to measure the effectiveness of performance measurement systems used in public sector IT outsourcing contracts. This research supports Bouckaert's (1993) proposition that an effective performance measurement system needs to include three essential characteristics : be valid, legitimate and functional. This research contributes to the existing literature on the choice and implementation of PMSs used in public sector IT outsourcing service contracts, and provides some practical guidance to public sector managers on the design of effective PMSs. The results also highlight that an effective PMS is a dynamic process that is not static and should be continually improved 2009 Conference Paper http://hdl.handle.net/20.500.11937/29070 Cranfield University fulltext
spellingShingle functionality
public sector IT outsourcing
validity
performance measurement systems effectiveness
legitimacy
Perrin, Brian
Pervan, Graham
Performance measurement system effectiveness in public sector IT outsourcing contracts
title Performance measurement system effectiveness in public sector IT outsourcing contracts
title_full Performance measurement system effectiveness in public sector IT outsourcing contracts
title_fullStr Performance measurement system effectiveness in public sector IT outsourcing contracts
title_full_unstemmed Performance measurement system effectiveness in public sector IT outsourcing contracts
title_short Performance measurement system effectiveness in public sector IT outsourcing contracts
title_sort performance measurement system effectiveness in public sector it outsourcing contracts
topic functionality
public sector IT outsourcing
validity
performance measurement systems effectiveness
legitimacy
url http://hdl.handle.net/20.500.11937/29070