OUTSOURCING CENTER RESEARCH
0-9
- 360-Degree Feedback A feedback process where not just your superior but your peers and direct reports and sometimes even customers evaluate you.
- 4PL (Fourth-Party Logistics) A supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organization with those of complementary service providers to deliver a comprehensive supply chain solution.
- 80/20 Rule Also known as the Pareto Principle, it states that roughly 80% of the effects come from 20% of the causes, often applied to focus outsourcing efforts effectively.
A
- Ad-hoc Reporting Customized or spontaneous reporting that may be called upon for unique circumstances, often offered by outsourced data services.
- Agent A person or business authorized to act on another’s behalf, often used in outsourcing sales and customer service roles.
- Agile Development A project management and product development approach that prioritizes flexibility and collaboration.
- Agile Methodology An approach to project management and product development that prioritizes flexibility and collaboration.
- Alternative Dispute Resolution (ADR) A way to resolve disputes outside the courts, often used in outsourcing contracts to solve conflicts.
- Application Programming Interface (API) A set of routines, protocols, and tools for building software and applications.
- Asset Recovery The process of maximizing the value of unused or end-of-life assets through effective reuse or divestment.
- Asynchronous Communication Communication that doesn’t happen in real-time, often utilized in distributed or outsourced teams.
B
- Back Office The portion of a company made up of administration and support personnel who are not client-facing.
- Backup and Recovery Strategies and processes to ensure that essential data is kept secure and can be restored in the event of a data loss event.
- Benchmarking Benchmarking is a systematic process of comparing an organization’s performance, processes, or products against industry standards or best practices. It helps businesses identify areas for improvement, set performance goals, and implement strategies to enhance their competitiveness and efficiency. Benchmarking can be applied to various aspects of business, from operational processes to customer satisfaction.
- Best Practices A method or technique that has been generally accepted as superior to any alternatives.
- Bid Process A formalized approach to buying a product or service that includes the announcement and submission of competitive bids.
- Billable Hours The amount of an employee’s work time that can be charged to a client.
- Bottleneck A point of congestion in a production system that occurs when workloads arrive too quickly for the production process to handle.
- Bottom Line The final total of an account or balance sheet, often the focus when considering the impact of outsourcing.
- Break-Fix Model An IT service model where services are provided on an as-needed basis.
- Budget Variance The difference between budgeted and actual figures, often scrutinized in outsourcing agreements for cost-effectiveness.
- Burn Rate The rate at which a company is losing money, often a factor when deciding whether to outsource to save costs.
- Business Case A written document that outlines the rationale for initiating a project or task, often used to justify the outsourcing process.
- Business Continuity The planning and preparation of a company to make sure it overcomes serious incidents or disasters and resumes its normal operations within a reasonably short period.
- Business Logic The part of an application that deals with the rules and procedures of the business.
- Business Model A conceptual framework that outlines how a business will operate, make money, and sustain itself.
- Business Process Automation (BPA) The technology-enabled automation of activities or services that accomplish a specific function or workflow.
- Business Process Outsourcing (BPO) The practice of contracting a specific work process or processes to an external service provider.
- Business Process Reengineering (BPR) The practice of rethinking and redesigning the way work is done to better support an organization’s mission.
- Buyer’s Market A market condition characterized by a surplus of goods available for sale, which therefore allows buyers to keep prices down.
C
- Cannibalization The reduction of sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.
- Capacity Planning The process used to determine how much capacity is needed in the future.
- Cash Flow The total amount of money being transferred into and out of a business, often considered in outsourcing to maintain liquidity.
- Change Control A formal process used to ensure that a product, system, or process changes only when and as it has been authorized to change.
- Change Management Change Management is the structured process of planning, implementing, and managing changes within an organization. It involves identifying and addressing resistance to change, communicating effectively, and ensuring that changes align with organizational goals and objectives. Successful change management minimizes disruption and fosters smooth transitions.
- Client-Centric Focusing primarily on the needs and wants of the client, often a goal in service outsourcing.
- Cloud Computing The delivery of different services over the Internet, including data storage, servers, databases, networking, and software.
- Cloud Computing Cloud Computing is a technology model that delivers computing services, including storage, processing, and applications, over the internet. Cloud services are typically offered on a pay-as-you-go basis and provide scalability, flexibility, and cost-efficiency for organizations.
- Cloud Migration The process of moving data, applications, and other business elements from an on-premises computer to the cloud.
- Cloud Services Brokerage A third-party individual or business that acts as an intermediary between the purchaser of a cloud computing service and the sellers of that service.
- Co-Browsing A software-enabled technique that allows someone to navigate a website simultaneously with another user.
- Code of Conduct A set of rules outlining the responsibilities or proper practices for an individual, party or organization.
- Compliance Adherence to laws, regulations, guidelines, and specifications relevant to its business processes.
- Compliance Audits An examination of a company’s adherence to regulatory guidelines, often outsourced to specialized firms.
- Contingency Plan A plan designed to take account of a possible future event or circumstance, often included in outsourcing agreements for risk management.
- Contract Management Contract Management is the systematic process of creating, negotiating, monitoring, and optimizing contractual agreements between organizations and their vendors, suppliers, or clients. It involves ensuring that all parties adhere to the terms and conditions of the contract, tracking performance, and addressing issues or changes as they arise. Effective contract management helps minimize risks and maximize the value of contractual relationships.
- Contract Renewal Contract Renewal is the process of extending or revalidating a contractual agreement between two or more parties. It typically involves renegotiating terms, conditions, and pricing to ensure that the contract remains relevant and beneficial.
- Contract Termination Clause A clause that allows a party to end a contract under specified conditions.
- Core Competencies Unique capabilities that give a company a competitive advantage, often kept in-house while other functions are outsourced.
- Cost Driver A factor that causes a particular cost to vary, typically evaluated to identify possible outsourcing benefits.
- Cost Leadership A strategy companies use to increase market share by lowering the cost of production, often through outsourcing.
- Cost Overrun Exceeding the original budget set for a project, something outsourced projects aim to minimize.
- Cost-Benefit Analysis An analytical approach to understand the advantages and disadvantages of different options, including outsourcing.
- Critical Success Factors (CSF) Vital areas in which a business must excel to achieve its mission, objectives, and goals.
- Cross-Training Cross-Training is a practice in which employees are trained to perform multiple roles or tasks within an organization. It enhances workforce flexibility and resilience by ensuring that employees can fill in for one another during peak demand or in the absence of a colleague. Cross-training also promotes skill development and teamwork.
- Cultural Fit The alignment of an organization’s practices and values with its community and stakeholders.
- Customer Relationship Management (CRM) Customer Relationship Management (CRM) encompasses strategies, practices, and technologies used to manage interactions with customers and build lasting relationships. CRM systems capture customer data, facilitate sales and marketing efforts, and enhance customer service, ultimately aiming to improve customer satisfaction and loyalty.
D
- Dashboard A tool used for information management and business intelligence, often provided as part of outsourced services.
- Data Breach A Data Breach refers to the unauthorized access, exposure, or theft of sensitive or confidential data. Data breaches can lead to privacy violations, financial losses, and reputational damage. Organizations must implement security measures and response plans to prevent and mitigate data breaches.
- Data Encryption Data Encryption is a security technique that converts data into a coded format to prevent unauthorized access or interception. Encryption uses algorithms and keys to encode information, making it unreadable without the appropriate decryption key. It is a fundamental method for safeguarding sensitive data.
- Data Governance The practice of ensuring high data quality within an organization, often an outsourced task.
- Data Migration The process of transferring data between different types of file formats, databases, or storage systems.
- Data Privacy The practice of ensuring that personal data is handled, stored, and processed securely.
- Data Security Measures taken to safeguard data against unauthorized access and corruption throughout its lifecycle.
- Deadstock Inventory that is not likely to be sold and takes up storage space.
- Decision Matrix A table used for setting priorities and making decisions, often related to various aspects of outsourcing.
- Deliverables Tangible or intangible goods or services produced as a result of a project.
- Digital Outsourcing The contracting out of a business process that is conducted over online platforms.
- Digitalization The use of digital technologies to change a business model and provide new revenue and value-producing opportunities.
- Disaster Recovery Plans and processes for recovering critical functionality after a catastrophic event.
- Disaster Recovery Plan (DRP) A documented process or set of procedures to recover and protect a business’s IT infrastructure.
- Distributed Team A team that works together from different geographic locations, often facilitated by outsourcing.
- Due Diligence Due Diligence is the systematic process of investigating, researching, and verifying information or facts related to a business transaction, investment, or decision. It ensures that all relevant information is known and evaluated before proceeding.
- Dynamic Pricing A pricing strategy in which businesses set flexible prices for products or services based on current market demands.
E
- Economies of Scale Reduction in the cost per unit resulting from increased production, realized through operational efficiencies.
- Employee Leasing An arrangement in which a company outsources its employees to another company that handles various HR tasks and functions.
- End-User Computing The use or operation of computers by non-technical personnel.
- Enterprise Architecture The process by which organizations standardize and organize IT infrastructure to aligns with business goals.
- Enterprise Resource Planning (ERP) Business process management software that allows organizations to use integrated applications to manage the business.
- Escalation Matrix A framework to handle issues or problems in a hierarchical manner, often used in outsourced customer support.
- Exit Strategy A pre-planned approach to divest the investor’s holdings and/or shut down a project or venture.
F
- Feasibility Study An analysis and evaluation of a proposed project to determine if it is technically feasible, is feasible within the estimated cost, and will be profitable.
- Fixed Costs Costs that do not change with the level of production or sales, often considered when outsourcing to reduce variable costs.
- Fixed Price Contract A Fixed Price Contract is a type of contractual agreement in which the price for goods or services is predetermined and remains fixed throughout the contract’s duration. This provides budget predictability for both parties involved, as the cost does not change, even if the actual expenses incurred by the service provider are higher than expected. Fixed Price Contracts are often used when the scope of work is well-defined and stable.
- Freelancer An individual who offers services to multiple businesses without a long-term contract with any of them.
- Full-Cycle Development The complete development process of a project from initial planning to final deployment and maintenance.
G
- Gamification The application of game-like elements in non-game contexts, often to improve user engagement.
- Gap Analysis A method for examining and evaluating the gap between current conditions and desired goals.
- Go-Live The point in time when systems are moved from a test environment to production and become available for use in a business setting.
- Gross Profit The profit a company makes after deducting the costs of making and selling its products, or the costs of providing its services.
H
- Headcount The number of people employed by a company, often considered when planning to outsource tasks.
- Help Desk A Help Desk is a centralized support service that provides assistance and resolves technical issues, inquiries, or problems for end-users or customers. It serves as a point of contact for reporting and tracking issues, offering solutions or escalating problems to specialized support teams as needed. An efficient Help Desk enhances user productivity and satisfaction.
- Hidden Costs Unforeseen or unplanned costs, often associated with outsourcing.
- High Availability Systems that are designed to be available a high percentage of the time.
- Hosted Services Services provided over the internet, typically contracted from an external company that hosts and maintains them.
- Human Resources Outsourcing (HRO) Human Resources Outsourcing (HRO) involves outsourcing HR functions such as payroll processing, recruitment, benefits administration, and employee management to third-party service providers. HRO allows organizations to focus on their core activities while leveraging HR expertise and efficiency.
- Hybrid Model A combination of in-house and outsourced services, often used to achieve the best balance of cost and quality.
I
- Impact Assessment Evaluating the potential consequences of an action or decision, often done before outsourcing.
- Incident Management The process of identifying, analyzing, and correcting hazards to prevent future re-occurrences.
- Incident Response Plan An Incident Response Plan is a documented strategy outlining the steps and procedures to follow in the event of a security incident or data breach. It includes incident detection, containment, eradication, recovery, and communication protocols to minimize damage and restore normal operations.
- Incubator A business support process that accelerates the successful development of startup companies through various resources and services.
- Indemnity Clause A clause in a contract that stipulates that one party will take responsibility for certain losses or damages incurred by another party.
- Independent Contractor A person or business which provides goods or services to another entity under terms specified in a contract.
- Information Security Management System (ISMS) A set of policies and procedures for systematically managing an organization’s sensitive data.
- Intellectual Property (IP) Intellectual Property (IP) refers to the legal rights and protections granted to intangible creations of the human mind, such as inventions, literary works, trademarks, and trade secrets. IP rights enable creators and inventors to control and profit from their creations, fostering innovation and creativity. Common forms of IP include patents, copyrights, trademarks, and trade secrets.
- Intellectual Property Rights (IPR) Intellectual Property Rights (IPR) encompass legal protections and rights granted to creators and innovators for their intellectual creations, such as patents, copyrights, trademarks, and trade secrets. IPR allows creators to control and profit from their inventions and creative works.
- Invoice A bill sent by a provider of a product or service to the purchaser.
- Invoicing Invoicing is the process of generating and sending bills or invoices to customers or clients for products or services provided. It includes details such as itemized charges, payment terms, due dates, and contact information. Accurate and timely invoicing is essential for maintaining cash flow and managing accounts receivable.
- IT Governance The framework that provides a formal structure for organizations to produce measurable results toward achieving their strategies and goals.
- IT Infrastructure The composite hardware, software, network resources, and services required for the existence, operation, and management of an enterprise IT environment.
- IT Operations The set of all processes and services that are both provisioned by an IT staff to their internal or external clients.
- IT Outsourcing (ITO) The practice of hiring a third-party service provider to handle aspects of your information technology needs.
- IT Service Management (ITSM) A strategic approach to designing, delivering, managing, and improving the way IT is used so that an organization can meet its business goals.
- IT Strategy A comprehensive plan that outlines how technology should be used to meet business goals and objectives.
- Iterative Development Iterative Development is an approach to software development that involves breaking a project into small cycles or iterations. Each iteration includes planning, design, development, testing, and review. It allows for continuous refinement, adaptation to changing requirements, and frequent delivery of working software. Iterative development is a key feature of Agile methodologies.
- ITIL Framework A set of best practices for IT service management that aims to align IT services with the needs of business.
J
- Joint Application Development (JAD) A methodology that involves the client or end user in the design and development of an application.
- Joint Operations Committee (JOC) A team responsible for overseeing the execution and alignment of a joint venture or partnership.
- Joint Requirements Planning (JRP) A process used in project management to gather the opinions and insights of the stakeholders involved.
- Joint Venture A business arrangement in which two or more parties collaborate for mutual benefit, often seen in large-scale outsourcing projects.
- Just-In-Time (JIT) Just-In-Time (JIT) is an inventory management strategy that aims to reduce waste, minimize inventory holding costs, and increase efficiency by delivering materials or products exactly when they are needed in the production process. JIT requires precise coordination between suppliers and manufacturers.
K
- Key Performance Indicator (KPI) A set of quantifiable measures that a company uses to gauge its performance over time.
- Key Success Factors (KSF) Elements that are necessary for an organization or project to achieve its mission.
- Knowledge Base A centralized repository for information, often outsourced or used to support outsourced operations.
- Knowledge Process Outsourcing (KPO) Knowledge Process Outsourcing (KPO) is a specialized form of outsourcing that involves the transfer of knowledge-intensive processes, such as research, data analysis, and intellectual property management, to third-party providers with expertise in these areas. KPO aims to leverage specialized knowledge and skills.
- Knowledge Transfer The methodical replication of the expertise, wisdom, and tacit knowledge of key personnel to other employees and teams.
- KPI Dashboard A tool used to track key performance indicators, providing a quick overview of business performance.
L
- Lead Time The time between the initiation and completion of a production process, often reduced through outsourcing.
- Lean Manufacturing Lean Manufacturing is a production approach that focuses on minimizing waste, optimizing processes, and improving efficiency. It aims to eliminate non-value-added activities and enhance the value delivered to customers while reducing costs.
- Liability An obligation that legally binds an individual or company, often managed through outsourcing contracts.
- Licensing Agreement A legal agreement by which the owner of intellectual property grants permission to another party to use that intellectual property.
- Load Testing The process of putting demand on a system and measuring its response to evaluate performance.
- Localization The adaptation of a product, service, or content to meet the language, cultural, and other requirements of a specific target market.
- Long-Term Contract A contract with a duration extending over a long period, often several years.
- Long-Term Relationship An ongoing relationship between a business and its vendors or service providers, sometimes achieved through successful outsourcing.
M
- Machine Learning A type of artificial intelligence that provides computers with the ability to learn without explicit programming.
- Managed Service Provider (MSP) A Managed Service Provider (MSP) is a company that specializes in delivering and managing IT services, including infrastructure, applications, and support, to other organizations. MSPs often offer proactive monitoring, maintenance, and optimization of IT systems to enhance efficiency and reduce downtime, allowing businesses to focus on their core objectives.
- Managed Services A business model where a company outsources the management of certain services to a specialized provider.
- Master Services Agreement (MSA) A Master Services Agreement (MSA) is a comprehensive, long-term contract that establishes the general terms, conditions, and obligations between a service provider and a client. It serves as a framework for future projects and services, allowing both parties to streamline the contract negotiation process for individual projects. MSAs often cover issues like payment terms, dispute resolution, and confidentiality.
- Material Breach A breach of contract so severe that it justifies immediate termination of the agreement.
- Microservices Microservices is a software architecture approach that decomposes complex applications into small, independently deployable services. Each service focuses on a specific function or feature, facilitating modularity, scalability, and flexibility in software development. Microservices architecture is known for its agility and ability to support continuous delivery.
- Milestone A significant stage or event in the development of a project.
- Multi-Vendor Sourcing Sourcing products or services from multiple vendors to reduce dependency on a single supplier.
N
- Nearshoring Outsourcing business processes or services to a nearby country, often to save on labor costs while maintaining similar time zones.
- Nearshoring The practice of transferring a business operation to a nearby country, rather than completely offshore.
- Nearshoring Nearshoring is an outsourcing strategy in which organizations contract services or production to nearby countries or regions, typically with similar time zones and cultural affinity. Nearshoring can offer cost savings while maintaining geographical proximity for easier collaboration and communication.
- Niche Sourcing Outsourcing strategies that are specialized for a particular industry or business function.
- Non-Disclosure Agreement (NDA) A legally binding contract that ensures confidential material, knowledge, or information isn’t made available to third parties.
O
- Offshore Development Center (ODC) An Offshore Development Center (ODC) is a dedicated facility or team located in a foreign country that provides software development or other services to an organization. ODCs are established to leverage cost advantages and access specialized skills while maintaining control and quality oversight.
- Offshoring Offshoring is the practice of outsourcing business functions or processes to a different country, often with the goal of reducing labor costs while maintaining or improving service quality. Offshoring can provide access to a global talent pool and economies of scale.
- Off-the-Shelf Software Software that is available to the general public and can be purchased and used without modification.
- Onboarding The action or process of integrating a new employee or vendor into an organization.
- On-Premises Software Software that is installed and runs on computers in the premises of the organization using the software.
- Operational Strategy A plan for how the organization will execute its mission in the most efficient and effective manner.
- Operations Management The administration of business practices aimed at ensuring maximum efficiency within a business.
- Outsourced Product Development (OPD) Delegating the activities involved in the software product development process to a third-party.
- Outsourcing Agreement An Outsourcing Agreement is a legally binding contract that defines the terms, responsibilities, and expectations between a client organization and a third-party service provider. It outlines the scope of services, service levels, performance metrics, pricing structures, and any legal or regulatory requirements. An effective Outsourcing Agreement is crucial for a successful outsourcing relationship.
- Outsourcing Model An Outsourcing Model defines the structure and approach used by organizations to outsource specific business functions or processes. Common outsourcing models include offshore outsourcing, onshore outsourcing, nearshoring, and hybrid models. Choosing the right model depends on factors such as cost, expertise, and proximity to the client’s location.
- Outsourcing Partner Delegating the activitiAn Outsourcing Partner is a trusted external entity that provides outsourced services to an organization. The partner is chosen based on its expertise, capabilities, and alignment with the client’s goals. Building a strong partnership is essential for achieving outsourcing success and long-term collaboration.es involved in the software product development process to a third-party.
- Overhead Costs Expenses not directly associated with the production of goods or services, often reduced through outsourcing.
P
- Performance Metrics Performance Metrics are quantifiable measures used to evaluate the effectiveness and efficiency of a process, project, or organization. These metrics help track progress, identify areas for improvement, and make data-driven decisions to optimize performance.
- Performance Reviews Regular reviews of employee performance within organizations, sometimes outsourced to HR consultants.
- Pilot Project A small-scale, preliminary study conducted to evaluate feasibility, time, cost, and adverse events, and improve upon the study design prior to performance of a full-scale project.
- Pilot Project A Pilot Project is a small-scale, controlled project or experiment conducted to test and evaluate a concept, solution, or process before implementing it on a larger scale. Pilots help organizations assess feasibility, identify issues, and refine strategies for broader adoption.
- Platform Integration The process of bringing together different computing platforms and software applications both physically and functionally.
- Portfolio Management The centralized management of one or more portfolios to achieve strategic objectives.
- Power User A user of a computer or software product that has advanced abilities and expertise.
- Process Optimization The discipline of adjusting a process to optimize specified set of parameters without violating constraints.
- Procurement The action of acquiring goods, services, or works from an outside external source.
- Project Charter A Project Charter is a formal, written document that serves as the foundation for a project. It outlines the project’s purpose, objectives, scope, stakeholders, roles, and responsibilities. It provides a clear direction for project teams, helping them understand the project’s goals and guiding decision-making throughout its lifecycle.
- Project Management The practice of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals.
- Project Scope The part of project planning involving defining and documenting a list of specific project goals, deliverables, tasks, costs, and deadlines.
R
- RACI Chart A diagram used for describing the roles and responsibilities of different team members in a project.
- Rapid Prototyping A set of techniques used to quickly fabricate a model of a part or assembly using CAD data.
- Rate Card A document containing prices and descriptions for the various services or products offered by a vendor.
- Real-Time Monitoring The live monitoring of various types of data and information.
- Redundancy Redundancy in the context of information technology and systems refers to the duplication of critical components, resources, or systems to ensure system availability and fault tolerance. Redundancy minimizes the risk of service disruptions or failures in the event of hardware or software issues, enhancing overall system reliability.
- Request for Information (RFI) A Request for Information (RFI) is a document used by organizations to gather information about potential suppliers, products, or services. It typically precedes the formal Request for Proposal (RFP) process and helps organizations identify qualified candidates for future partnerships or projects.
- Request for Proposal (RFP) A Request for Proposal (RFP) is a formal document issued by an organization to solicit detailed proposals from potential suppliers or service providers. RFPs specify project requirements, evaluation criteria, and desired outcomes, allowing organizations to make informed vendor selections.
- Request for Quotation (RFQ) A business process in which a company invites suppliers into a bidding process to bid on specific products or services.
- Re-shoring The practice of transferring a business operation back to its country of origin after it was moved to a foreign country.
- Resource Allocation Resource Allocation involves effectively assigning and managing resources, such as human resources, budget, and equipment, to projects or tasks in a way that maximizes productivity and ensures optimal utilization of available assets.
- Return on Investment (ROI) A performance measure used to evaluate the efficiency of an investment.
- Risk Assessment The identification, evaluation, and estimation of the levels of risks involved in a situation, often undertaken in the process of outsourcing.
- Risk Management The forecasting and evaluation of risks together with the identification of procedures to minimize their impact.
- Risk Mitigation Risk Mitigation refers to the strategic actions taken to identify, assess, and reduce potential risks that may negatively impact a project or an organization. These actions aim to minimize the likelihood of risk occurrence and mitigate its potential consequences. Risk mitigation strategies can include risk avoidance, risk transfer, risk reduction, and risk acceptance.
S
- Scalability The capability of a system, network, or process to handle a growing amount of work.
- Scope Creep Uncontrolled changes or continuous growth in a project’s scope, usually occurring when the scope of a project is not accurately defined, documented, or controlled.
- Service Availability The time a system is functioning and available for use.
- Service Delivery Service Delivery refers to the process of planning, implementing, and managing the delivery of services to customers or clients. It encompasses various activities, including resource allocation, performance monitoring, and customer support, aimed at meeting service level agreements (SLAs) and ensuring a positive customer experience. Effective service delivery is a key driver of customer satisfaction and retention.
- Service Desk A communications center that provides a single point of contact between a company and its customers, employees, and business partners.
- Service Level Agreement (SLA) A contract between a service provider and a client that specifies the level of service that the client expects.
- Service Level Indicator (SLI) A Service Level Indicator (SLI) is a specific metric or measurement used to assess the performance of a service. SLIs are defined within Service Level Objectives (SLOs) and are used to monitor and evaluate how well a service meets its defined standards.
- Service Level Objective (SLO) A Service Level Objective (SLO) is a specific target or measure defined within a Service Level Agreement (SLA) that outlines the expected performance of a service. SLOs are used to set expectations and track the service provider’s adherence to agreed-upon performance standards. Meeting SLOs is crucial for ensuring a high-quality service experience.
- Service Level Requirements (SLRs) Service Level Requirements (SLRs) are detailed specifications within a Service Level Agreement (SLA) that define the specific expectations and criteria for service performance. SLRs provide clarity on service quality and ensure alignment with business needs.
- Service Repository A centralized database where service definitions are stored and maintained.
- Shared Services Shared Services is an organizational model in which support functions and services, such as HR, finance, IT, and procurement, are consolidated and centralized to serve multiple parts of an organization. Shared Services aim to achieve efficiency, cost savings, and standardization.
- Software as a Service (SaaS) A software licensing and delivery model in which software is provided over the Internet, eliminating the need for in-house installation.
- Software Development Kit (SDK) A collection of software tools that allow developers to create applications for certain software packages, hardware platforms, or operating systems.
- Software Lifecycle The Software Lifecycle encompasses the stages and processes involved in developing, deploying, and maintaining software applications or systems. It typically includes requirements gathering, design, development, testing, deployment, maintenance, and eventual retirement or replacement. Managing the software lifecycle effectively ensures software quality, reliability, and alignment with business objectives.
- Stakeholder Management Stakeholder Management involves identifying, engaging, and effectively communicating with individuals or groups (stakeholders) who have an interest or influence in a project or organization. The goal is to understand their needs, expectations, and concerns and to ensure their interests align with project objectives. Proactive stakeholder management can mitigate risks and enhance project success.
- Statement of Work (SOW) A document that defines project-specific activities, deliverables, and timelines for a vendor providing services to the client.
- Strategic Outsourcing The transfer of the management and/or day-to-day execution of a business function to an external service provider.
- Subcontracting Subcontracting is the practice of outsourcing part of a project or service to another external provider. It allows organizations to leverage specialized expertise or resources not available in-house while retaining overall control of the project. Effective subcontracting requires clear agreements and coordination among all parties involved.
- Supplier Relationship Management (SRM) Supplier Relationship Management (SRM) involves the strategic management of relationships with suppliers and vendors. It encompasses activities such as supplier selection, performance monitoring, collaboration, and risk management to ensure mutually beneficial and productive partnerships.
- Supply Chain A system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.
- Sustainability Meeting the needs of the present without compromising the ability of future generations to meet their own needs, sometimes a consideration in outsourcing.
T
- Talent Pool A database where recruiters and HR Managers keep all of their top job candidates.
- Task Automation Using technology to perform tasks without human intervention.
- Technical Support Technical Support is a service provided to end-users or customers to help them resolve technical issues or inquiries related to products, software, or systems. It often includes troubleshooting, guidance, and problem resolution to ensure a smooth user experience.
- Technology Outsourcing The act of delegating a company’s technology operations and support to an external agency.
- Technology Stack Evaluation The assessment of the set of technologies, software, and tools that are used in the development and deployment of a service or application.
- Test Automation The use of special software to control the execution of tests and the comparison of actual outcomes with predicted outcomes.
- Third-Party Provider An external organization that is contracted to provide services that could be performed in-house.
- Time & Material Contract A type of contractual agreement that is used for paying purchased services, usually at specified hourly rates.
- Total Cost of Ownership (TCO) Total Cost of Ownership (TCO) is a comprehensive assessment that considers all direct and indirect costs associated with owning, operating, and maintaining an asset or system over its entire lifecycle. TCO analysis helps organizations make informed investment decisions.
- Transition Management The process of migrating knowledge, systems, and operating capabilities between an outsourcing environment to an in-house staff.
- Transparency Transparency in business operations refers to a company’s commitment to open and clear communication with stakeholders, including customers, employees, investors, and the public. It involves sharing information, decisions, and actions honestly and ethically, fostering trust, accountability, and credibility. Transparent organizations are more likely to build strong, positive relationships with their stakeholders.
- Turnkey Contract A contract type that is designed to be ready to use; upon completion of the contract, the project or service is ready for use.
- Turnkey Solution A type of system built end-to-end for a customer that can be easily implemented into current business processes.
U
- Unified Communications The integration of real-time communication services such as instant messaging, video conferencing, and data sharing.
- Unit Testing Testing of individual units or components of a software to ensure each part is working as intended.
- User Training The process of educating employees or users on how to effectively use a new technology or process.
V
- Vendor Accreditation A formal verification process a vendor undergoes to prove the quality of their products and services.
- Vendor Analysis The process of evaluating and comparing potential vendors based on various criteria like quality, cost, reputation, and service.
- Vendor Evaluation Vendor Evaluation is the process of assessing potential suppliers or service providers based on predefined criteria, such as cost, quality, reliability, and reputation. It involves conducting due diligence, requesting proposals, and conducting vendor assessments to select the most suitable partners. Effective vendor evaluation helps organizations make informed outsourcing decisions.
- Vendor Lock-In Vendor Lock-In occurs when a company becomes heavily dependent on a specific vendor’s products, services, or technologies to the extent that switching to an alternative vendor is costly or complex. Vendor lock-in can limit flexibility and increase long-term costs, making it a potential business risk.
- Vendor Management The discipline of managing, controlling and directing dealings with an organization’s vendors.
- Vendor Management System (VMS) An application that acts as a mechanism for businesses to manage and procure staffing services.
- Vendor Risk Management The process of ensuring that the use of service providers and IT suppliers does not create an unacceptable potential for business disruption.
- Vendor Selection The process of researching and identifying the best vendors to supply services or products needed by a company.
- Vertical Integration Vertical Integration is a business strategy in which a company controls multiple stages of its supply chain, from raw material production to distribution and retail. Vertical integration can enhance efficiency, quality control, and cost management while reducing dependence on external suppliers.
- Virtual Assistant An independent contractor who provides administrative services to clients while operating outside of the client’s office, often outsourced.
- Virtual Team A team that is geographically dispersed and communicates electronically more than face-to-face.
W
- Web Hosting A service that allows organizations and individuals to post a website or web page onto the Internet.
- Web Services Standardized software modules that allow different systems to communicate with each other over the web.
- Work Breakdown Structure (WBS) A Work Breakdown Structure (WBS) is a hierarchical breakdown of a project into smaller, manageable tasks or work packages. It helps project managers and teams organize and plan project activities, allocate resources, and monitor progress effectively.
- Workforce Analytics The use of statistical models and software to analyze employee data, improve organizational effectiveness.
- Workforce Management The range of activities for maintaining a productive workforce, such as human resource management, forecasting, field service management, and data collection.
- Work-in-Progress (WIP) Represents the products, services or transactions that are still incomplete.
- Workload Analysis The study of workload to determine the most efficient and effective ways to complete tasks, often used in the context of outsourcing.
Z
- Zero-Based Budgeting A budgeting method where all expenses must be justified for each new budget period, often considered when restructuring or outsourcing.