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Establishing a cost per unit of work delivered is a critical measure in the successful management and monitoring of the outsourcing arrangement. The function point method permits the creation of a unit-of-work measure that monitors both the cost performance and the functional deliverable. This measure can satisfy both the IT organization's need to monitor the outsourcing contract and the user's need to ensure the value of the deliverable. In addition, the use of function points provides the opportunity to make comparisons to industry performance levels.

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