Turnaround time: what to agree with an outsourced team

Key takeaways

Turnaround time in outsourcing is the time from a task reaching the provider to it being completed to the agreed standard. Set it per task type, in working hours, with a cut-off time for same-day work. Measure the share of items within target each week, not just the average, because a good average can hide a long tail of late work.

• Define turnaround per task type, in working hours.
• Set a daily cut-off for same-day work.
• Report the share within target, not only the average.
• Pause the clock only for agreed reasons, written down.

What is turnaround time?

Turnaround time is the elapsed time between a task being handed to a team and the finished result being returned. In outsourcing it is usually measured in working hours from receipt to completion. It sits inside the customer's lead time, so a fast turnaround only helps if work reaches the provider promptly too.

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How do you set turnaround targets?

Set targets from what the customer or the next step needs, then check they are achievable against volumes. A supplier invoice might be four working hours, a customer email reply two hours, a new account setup one working day. Different types need different targets. One blanket target is either too slow for urgent work or impossible for complex work.

• Urgent or customer-facing: hours, with a same-day cut-off.
• Routine processing: same or next working day.
• Complex or multi-step: a set number of working days.
• Exceptions: a separate target once a decision is received.

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How should turnaround be measured?

Measure the percentage of items completed within target each week, plus the age of anything still open past target. Averages hide problems: 90 items in one hour and 10 in three days averages under a day but leaves ten customers waiting. Agree when the clock pauses, for example while waiting on your decision, and log every pause.

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What does a good agreement look like?

In an illustrative agreement, invoices received by 2pm UK time are processed the same working day, with a target of 95% within that window; customer emails get a first reply within two working hours at 90%; anything needing your decision is flagged within one hour. Example targets to show the format, not a recommendation for every business.

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Why does turnaround slip?

Turnaround slips for four common reasons: volumes rise without capacity changing, items arrive incomplete, exceptions wait for your decision, or the provider's team is shared across too many clients. The weekly report should show which. Each has a different fix, from flexing hours to tightening the intake form.

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When should you not chase faster turnaround?

Do not chase faster turnaround when the next step cannot use it, for example if invoices are only paid weekly anyway, or when speed would cut checks that protect accuracy. Faster is only better if the customer or the next step benefits.

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What does this look like in practice?

A pattern we see: an agreement promises next-day turnaround on average, and the weekly report looks fine. Customers still complain. Switching to the share within target reveals a group of complex items taking a week. A separate target for those items fixes the complaints.

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Turnaround checklist

Agree these before the work starts.

• List task types and set a target for each.
• Agree working hours and a same-day cut-off.
• Define when the clock starts, pauses and stops.
• Report share within target weekly.
• Review targets after 90 days.

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Next step

Send us the tasks you plan to outsource. We will suggest turnaround targets and a simple way to report them each week.