Outsourcing is a key issue for many organisations having moved from the contracting out of peripheral activities such as cleaning to more critical areas such as design and marketing. This report is for managers and people in finance and accounting functions and takes a practical approach in developing a framework and then applying this framework in an actual organisation which makes it easier for practitioners to understand. This report provides a framework which incorporates both qualitative and quantitative performance measures that can be used in the outsourcing process . This research is of value to commercial and public sector organisations as well as academics as it provides insights for organisations considering outsourcing that will enable them to assess service levels throughout the contract.