According to the study done by KPMG International, 42% of the companies who outsource reveals having no formal way of measuring their outsourcing transactions.

This means that most of these companies have no idea on the effect that outsourcing has in their organization. Most of the companies also responded stating that "gut feel or anecdotal evidence" is enough for them in measuring the performance of their outsourcing deals.

I think that this kind of thinking would go well for personal decision but not with business ones. In order for companies to know that outsourcing works for them, they should have a concrete and systemized process of measuring its performance and identifying the effects it has on an organization.

Measuring the outsourcing performance of an outsourcing deal is important because it would be the basis in the decision of whether or not to continue outsourcing.