What Metrics Should You Evaluate in Your Technology Provider to Ensure Project Success
Choosing a technology vendor isn’t just about price or reputation. What truly determines the success of a digital project is your ability to measure, control, and optimize the performance of the team building your solutions. That’s why implementing a data-driven evaluation model with concrete metrics is essential for any company outsourcing software development.
In this blog, we’ll explain the most important metrics you should monitor with your tech provider—and how to use them to ensure consistent quality, efficiency, and alignment with your business goals.
Why You Need Metrics to Evaluate Your Vendor
Working with a vendor without clear performance metrics is like driving blind. Without data, you won’t know if deliverables meet your standards, if the team is working efficiently, or if business expectations are being fulfilled.
A metric-based strategy helps you:
Make objective, data-driven decisions
Detect issues before they escalate
Optimize timelines and development costs
Ensure technical and functional quality
Evaluate long-term performance
Key Metrics You Should Monitor
Here are the most relevant categories and indicators for evaluating a tech provider:
1. Productivity Metrics
Development velocity (e.g., story points completed per sprint)
Average delivery time (from idea to deployment)
% of tasks closed on time
Average team capacity by role
What do they tell you?
They measure the team’s operational efficiency and ability to meet deadlines consistently.
2. Quality Metrics
Percentage of bugs detected after production
Test coverage (unit tests, automated tests)
Frequency of critical incidents
Mean time to bug resolution
What do they tell you?
They reflect the quality of the codebase and the product’s reliability under real conditions.
3. SLA Compliance Metrics (Service Level Agreements)
Response time to support tickets or incidents
Average problem resolution time
Delivery adherence rate (per sprint or phase)
What do they tell you?
They measure the vendor’s ability to keep formal commitments and deliver consistently.
4. Collaboration and Management Metrics
Frequency of communication (reports, meetings, feedback loops)
Participation rate in workshops or strategic discussions
Documentation delivered per release
Internal satisfaction survey results
What do they tell you?
They evaluate the quality of the working relationship, strategic alignment, and collaboration efficiency.
5. Business Value Metrics
Time to market (from concept to initial version)
Return on investment (ROI) from the project
Achievement of business goals tied to the software
Productivity or revenue impact (when applicable)
What do they tell you?
They reveal how technical work translates into tangible business outcomes.
How to Effectively Implement These Metrics
1. Define KPIs in the contract
Set expectations from day one by including performance metrics and KPIs directly in the contract or SLA. Be specific about what will be measured and how.
2. Use collaborative tools
Track performance using platforms like Jira, Asana, Trello, or ClickUp, which allow transparency, shared reporting, and real-time visibility.
3. Conduct regular performance reviews
Hold monthly or sprint-based check-ins to analyze the data, identify bottlenecks, and discuss improvements directly with your vendor.
4. Establish consequences and improvement plans
Specify what happens if performance falls below expectations—this could include financial penalties, team realignment, or re-training processes. Having clear thresholds encourages accountability.
