Outsourcing
Application Service Provider
An organization that hosts software applications on its own servers using its own facilities and resources. Customers rent the use of the application and access it over the world-wide-web.
Business Process Outsourcing
Business Process Outsourcing (BPO) occurs when an organization turns over the management of a business process to a third party that conducts the activity based on a set of predetermined performance metrics.
Call Center
A third-party organization that handles telephone sales and/or service. Call centers use automatic call distributors (ACDs) to route calls to the appropriate agent.
CMM
(Capability Maturity Model) A process developed by SEI (Software Engineering Institute) in 1986 to help improve the management of software projects in an organization. The process is broken into five levels of development: Initial, Repeatable, Defined, Managed and Optimizing.
Functional Process Outsourcing
Company’s internal processes that exist to support people within the company and are often performed within a single department. Human resources, finance and accounting, travel, and facilities services are examples. When these functional processes are outsourced, along with the supporting technologies and supply chains that feed into them, it is referred to as functional process outsourcing.
Net sourcing
Outsourcing applications that run on the Web.
Offshore
An outsourcing term describing the provision of services from a country that is geographically remote from the organization.
Outsourcing Risk
Risk refers to the chance for unexpected negative business outcomes resulting from internal or external factors.
Service Level Agreement
An SLA is a contract or addendum to a contract that defines the type, value, conditions and penalty violations of the outsourcing services to be provided.
SLA
Acronym for "Service Level Agreement". Service Provider
An organization that provides some kind of communications, storage or processing service or any combination of the three.
Tactical Outsourcing
Outsourcing to achieve operational efficiencies. Tactical outsourcing is approached as a competition between existing internal operations and outside service providers.
Transformational Outsourcing
Outsourcing to take advantage of innovation and new business models. Transformational Outsourcing is approached as a way to fundamentally reposition the organization in its markets.
Zero-Based Sourcing
Zero-based sourcing means that the sourcing decision for each and every aspect of a business’s operation which is re-justified after planning every cycle from an assumed base of zero.
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