In the context of outsourcing, what does the term 'technical criteria' most commonly refer to?

In the context of outsourcing, 'technical criteria' typically refers to the specific requirements related to the delivery and quality of goods or services that a supplier must meet. This encompasses the performance standards, specifications, and quality benchmarks that are crucial for ensuring that the outsourced products or services fulfill the intended purpose effectively.

Delivery criteria might include timelines, logistics, and the reliability of service provision, while quality criteria involve adherence to standards that meet or exceed client expectations. These elements are essential for maintaining operational efficiency and satisfying customer needs, making them fundamental aspects of the evaluation process when selecting a supplier for outsourcing.

While cost and budget, supplier's reputation, and compliance with regulations are important considerations in the overall outsourcing decision-making framework, they fall under different categories. Cost pertains more to economic feasibility, supplier's reputation relates to perceived reliability and trustworthiness, and compliance with regulations addresses legal and ethical standards. In contrast, technical criteria are specifically focused on the intrinsic capabilities and deliverables of the suppliers.