Outsourcing Glossary
Short definitions for common outsourcing, procurement and vendor-management terms.
BPO
Business process outsourcing: contracting an outside provider to run a defined business process.
Onshore
Outsourcing performed in the same country as the client.
Nearshore
Outsourcing performed in a nearby country, often with closer time-zone overlap.
Offshore
Outsourcing performed in a more distant country, often for cost, capacity or skill reasons.
SLA
Service level agreement: measurable performance expectations and reporting rules.
RFP
Request for proposal: a structured document asking vendors to respond to the same requirements.
Transition
The move from internal or old-vendor operation to the new vendor model.
Governance
The routines used to monitor performance, issues, changes, invoices and risk.
Exit plan
A plan for ending or replacing a vendor relationship without avoidable disruption.
Staff augmentation
Using outside workers under the client’s direction rather than transferring full responsibility for an outcome.