Operational
Lexicon.
The definitive guide to AI and outsourcing terminology. Understand the language of modern operations.
Ad Hoc
Tasks or projects done on an as-needed basis, often without a predefined schedule or long-term plan.
Agentic AI
AI systems capable of autonomous action, decision-making, and tool use to achieve goals without constant human intervention.
Artificial Intelligence (AI)
The simulation of human intelligence processes by computer systems, including learning, reasoning, and self-correction.
Attrition Rate
The rate at which employees leave a workforce over a given period, a key metric in BPO stability.
Automation
The use of technology to perform tasks with reduced human assistance.
Back Office Outsourcing
Outsourcing internal business functions such as data entry, accounting, HR, and IT support, which are not client-facing.
Bench
A pool of talented employees who are hired and trained but not yet assigned to a specific client project, ensuring rapid deployment.
BPO (Business Process Outsourcing)
The contracting of non-primary business activities and functions to a third-party provider.
Business Continuity Planning (BCP)
A strategy ensuring that business operations can continue with minimal disruption during unexpected events or disasters.
Call Center
A centralized office used for receiving or transmitting a large volume of enquiries by telephone.
Cloud Computing
The delivery of computing services—including servers, storage, databases, networking, software—over the Internet.
Co-sourcing
A business arrangement where a company partners with a vendor to manage a function together, sharing risks and management responsibilities.
Customer Experience (CX)
The aggregate of all interactions a customer has with a brand, from discovery to support.
Customer Relationship Management (CRM)
Technology for managing all your company's relationships and interactions with customers and potential customers.
Data Mining
The process of discovering patterns in large data sets involving methods at the intersection of machine learning, statistics, and database systems.
Data Security
Protective measures employed to secure data from unapproved access and to preserve data confidentiality, integrity, and availability.
Dedicated Team Model
An engagement model where an outsourced team works exclusively for a single client, similar to an in-house team.
Digital Transformation
The integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers.
E-commerce Outsourcing
Contracting out specialized tasks related to online retail, such as listing management, order fulfillment, and customer support.
Employer of Record (EOR)
A third-party organization that takes on the legal responsibilities of employing staff on behalf of another company.
Enterprise Resource Planning (ERP)
Software used by organizations to manage day-to-day business activities such as accounting, procurement, project management, and manufacturing.
Escalation
The process of moving a customer query or issue to a higher-level agent or supervisor for resolution.
Front Office Outsourcing
Outsourcing customer-facing services such as contact centers, sales, and help desks.
FTE (Full-Time Equivalent)
A unit that indicates the workload of an employed person in a way that makes workloads comparable across various contexts.
GDPR (General Data Protection Regulation)
A legal framework that sets guidelines for the collection and processing of personal information from individuals who live in the European Union.
Global In-House Center (GIC)
A captive center located in a low-cost country, owned and operated by the parent company rather than a third-party vendor.
Help Desk
A resource intended to provide the customer or end user with information and support related to a company's products and services.
Human-in-the-Loop (HITL)
A model of human interaction with AI where humans provide feedback or validation to improve the model's accuracy.
Hybrid Model
An operational structure combining onshore, nearshore, and offshore teams, or remote and in-office work.
Inbound Call Center
A call center that primarily handles incoming calls from customers, often for support or inquiries.
Infrastructure as a Service (IaaS)
A form of cloud computing that provides virtualized computing resources over the internet.
ISO Certification
Certification from the International Organization for Standardization, indicating a company follows global standards for quality, safety, and efficiency.
KPI (Key Performance Indicator)
A measurable value that demonstrates how effectively a company is achieving key business objectives.
KPO (Knowledge Process Outsourcing)
Outsourcing of core, information-related business activities which are competitively important or form an integral part of a company's value chain.
Labor Arbitrage
The practice of searching for and using the lowest cost labor available, often by moving operations to countries with lower wages.
LPO (Legal Process Outsourcing)
The practice of a law firm or corporation obtaining legal support services from an outside law firm or legal support services company.
Managed Pod
A KDCI-specific model where a dedicated team operates with its own internal leadership and QA structure, embedded within your company.
Managed Services
The practice of outsourcing the responsibility for maintaining, and anticipating need for, a range of processes and functions.
Multichannel
Providing support or sales across multiple distinct channels (email, phone, chat) that may not necessarily be integrated.
Nearshoring
The practice of transferring a business operation to a nearby country, often sharing a border or time zone.
NPS (Net Promoter Score)
A market research metric that is based on a single survey question asking respondents to rate the likelihood that they would recommend a company, product, or service.
Offshoring
The practice of basing some of a company's processes or services overseas, so as to take advantage of lower costs.
Omnichannel
A cross-channel content strategy that improves the user experience and drives better relationships across all points of contact.
Onshoring
Relocating business processes to a lower-cost location inside the same national borders.
Outbound Call Center
A call center where agents make outgoing calls to prospective or existing customers.
Outsourcing
The business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house.
Process Improvement
The proactive task of identifying, analyzing, and improving upon existing business processes within an organization.
Project Management
The application of processes, methods, skills, knowledge, and experience to achieve specific project objectives.
QA (Quality Assurance)
A way of preventing mistakes and defects in manufactured products and avoiding problems when delivering products or services to customers.
QC (Quality Control)
A procedure or set of procedures intended to ensure that a manufactured product or performed service adheres to a defined set of quality criteria.
Remote Work
A working style that allows professionals to work outside of a traditional office environment.
RPA (Robotic Process Automation)
Software technology that makes it easy to build, deploy, and manage software robots that emulate humans actions.
RPO (Recruitment Process Outsourcing)
A form of business process outsourcing where an employer transfers all or part of its recruitment processes to an external service provider.
Scalability
The capacity to be changed in size or scale, especially the ability of a business system to handle growing amounts of work.
Seat Leasing
A BPO model where the client rents the physical office space and infrastructure, but manages the staff directly.
Shared Services Center (SSC)
A centralized unit within a corporation that provides services to the other business units.
SLA (Service Level Agreement)
A commitment between a service provider and a client. Particular aspects of the service – quality, availability, responsibilities – are agreed between the service provider and the service user.
SOP (Standard Operating Procedure)
A set of step-by-step instructions compiled by an organization to help workers carry out complex routine operations.
Staff Augmentation
An outsourcing strategy where external personnel are used to temporarily augment the capacity of your organization.
Talent Acquisition
The process of finding and acquiring skilled human labor for organizational needs and to meet any labor requirement.
Telemarketing
The direct marketing of goods or services to potential customers over the telephone or the internet.
Time and Materials (T&M)
A contract type where the employer agrees to pay the contractor based upon the time spent by the contractor's employees and for materials used.
Total Cost of Ownership (TCO)
A financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system.
Turnover Rate
The percentage of employees in a workforce that leave during a certain period of time.
Upselling
A sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons.
Virtual Assistant (VA)
A generally self-employed individual who provides professional administrative, technical, or creative assistance to clients remotely.
VoIP (Voice over Internet Protocol)
A technology that allows you to make voice calls using a broadband Internet connection instead of a regular (or analog) phone line.
Workflow Automation
The design, execution, and automation of processes based on workflow rules where human tasks, data or files are routed between people or systems based on pre-defined business rules.
Workforce Management (WFM)
An institutional process that maximizes performance levels and competency for an organization.
Zero Trust Security
A security framework requiring all users, whether in or outside the organization's network, to be authenticated, authorized, and continuously validated.