Outsourcing is shifting gears from T&M (time and material) and fixed price deals to Managed Services. This represents a transition from contracting for services rather than bodies. The emphasis on Service Level Agreements (SLAs) rather than resources.
This has important implications for vendors. They can no longer be complacent that they will get paid based on number of people on a project irrespective of output and productivity. Performance matters. In view of the increasingly competitive nature of outsourcing, a vendor must show high SLAs. This can only happen with increasing workforce efficiency.
Efficiency has two components: quality of staff to get the best results, and the quality of time they spend at work. Organizations track performance metrics for the first. They need our product, Sapience, for the second. Find out more about Sapience at http://sapience.net/.