Abstract
Successful outsourcing experiences are not based on the levying of penalties for failure but on the accrual of expected benefits by both parties involved in the outsourcing agreement. For these benefits to accrue, IS managers must implement a proactive, forward-looking oversight mechanism designed to ensure that the outsourcing provider operates in a performance zone that provides the expected business value. Outsourcing oversight metrics—key performance-monitoring parameters built into the outsourcing agreement and assessed on an on-going basis—form the basis of such a mechanism.