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Outsourcing Glossary

Back-office - collective term for tasks performed in running a company; this includes technical support, customer service, human resources, etc.

Build-Operate-Transfer (BOT) - a type of outsourcing solution or service delivery model wherein a service provider takes on the initial work (recruitment, workstation setup, operations management, etc.), then the client gradually takes over the offshore operation

Business Process Outsourcing (BPO) - the process of transferring the management and/or execution of a specific business process to a service provider

Captive center - refers to the extension of business operations; the parent company has full control over the business processes

Client - refers to the company that transfers business processes to a service provider; also called service buyer or simply buyer

Core competencies - collective term for the internal skills, knowledge sets, and/or capabilities that give companies a competitive edge

Data processing - an outsourcing discipline that involves entry, manipulation or encoding of data into the system or database of the client

Fixed project pricing - a pricing model in which the cost is agreed upon by the client and service provider before working on a project

Game moderation - an outsourcing discipline that involves screening content/messages from players in role-playing games (rpg) or massive multi-player online (mmo) games, approving those that are within set guidelines, and removing offensive, malicious, and/or pornographic content

Human Resource Outsourcing (HRO) - refers to the transfer of human resource-related tasks to a service provider

Information Technology Outsourcing (ITO) - refers to the transfer of the management, implementation, and/or execution of IT products and/or processes to a service provider

Key Performance Indicator (KPI) - refers to the quantitative and/or qualitative measure of performance; used to determine if the goals are met and address problems that cause poor performance

Knowledge Process Outsourcing (KPO) - the process of transferring the management and/or execution of knowledge-related and information-related business process to a service provider

Non-voice outsourcing - transfer of non-voice BPO work (administrative tasks, creative writing, etc.) to a service provider

Offshore staff leasing - a type of outsourcing solution or service delivery model that enables you to handpick employees who will work for you from an offshore location; gives you full and direct control over the employees, tools, and resources needed in the operation

Offshore team - a team of full-time employees working for you exclusively from an offshore location; size can range from 1 to 25 employees

Offshoring - the process of moving the management and/or execution of a business process to a service provider located in a country that is geographically distant from the client

Outsourcing - the general term that refers to the transfer of management and/or execution of a business process to a service provider

Project brief - refers to a short outline or introduction about a project; this includes some basic information such as project duration, talent and tools needed, type of management, etc.

Service provider - refers to the company that manages and/or executes the business processes transferred by the client; also called service vendor, supplier or simply provider

Short-term staff leasing - an outsourcing agreement designed for clients who only need at least one full-time employee to take on a small project for a short period of time

Transcription - process of converting audio and/or scanned image files into written form; files can be from business meetings, seminars, conferences, and focus group discussions

User-generated content (UGC) moderation - an outsourcing discipline that involves screening content (messages, images, videos, etc.) from users, approving those that are within set guidelines, and removing offensive, malicious, and/or pornographic material

Virtual captive - also known as synthetic or hybrid captive; a type of outsourcing solution or service delivery model wherein the service provider handles the recruitment process and operational management while enabling you to maintain full control over your large-scale offshore operation

Voice outsourcing - transfer of voice-based work or call center functions (customer support, telemarketing, etc.) to a service provider