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.