KDCI AI operations and offshore staffing glossary and terminology reference

Operational
Lexicon.

The definitive guide to AI and outsourcing terminology. Understand the language of modern operations.

Ad Hoc

A

Tasks or projects done on an as-needed basis, often without a predefined schedule or long-term plan.

Agentic AI

A

AI systems capable of autonomous action, decision-making, and tool use to achieve goals without constant human intervention.

Artificial Intelligence (AI)

A

The simulation of human intelligence processes by computer systems, including learning, reasoning, and self-correction.

Attrition Rate

A

The rate at which employees leave a workforce over a given period, a key metric in BPO stability.

Automation

A

The use of technology to perform tasks with reduced human assistance.

Back Office Outsourcing

B

Outsourcing internal business functions such as data entry, accounting, HR, and IT support, which are not client-facing.

Bench

B

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)

B

The contracting of non-primary business activities and functions to a third-party provider.

Business Continuity Planning (BCP)

B

A strategy ensuring that business operations can continue with minimal disruption during unexpected events or disasters.

Call Center

C

A centralized office used for receiving or transmitting a large volume of enquiries by telephone.

Cloud Computing

C

The delivery of computing services—including servers, storage, databases, networking, software—over the Internet.

Co-sourcing

C

A business arrangement where a company partners with a vendor to manage a function together, sharing risks and management responsibilities.

Customer Experience (CX)

C

The aggregate of all interactions a customer has with a brand, from discovery to support.

Customer Relationship Management (CRM)

C

Technology for managing all your company's relationships and interactions with customers and potential customers.

Data Mining

D

The process of discovering patterns in large data sets involving methods at the intersection of machine learning, statistics, and database systems.

Data Security

D

Protective measures employed to secure data from unapproved access and to preserve data confidentiality, integrity, and availability.

Dedicated Team Model

D

An engagement model where an outsourced team works exclusively for a single client, similar to an in-house team.

Digital Transformation

D

The integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers.

E-commerce Outsourcing

E

Contracting out specialized tasks related to online retail, such as listing management, order fulfillment, and customer support.

Employer of Record (EOR)

E

A third-party organization that takes on the legal responsibilities of employing staff on behalf of another company.

Enterprise Resource Planning (ERP)

E

Software used by organizations to manage day-to-day business activities such as accounting, procurement, project management, and manufacturing.

Escalation

E

The process of moving a customer query or issue to a higher-level agent or supervisor for resolution.

Front Office Outsourcing

F

Outsourcing customer-facing services such as contact centers, sales, and help desks.

FTE (Full-Time Equivalent)

F

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)

G

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)

G

A captive center located in a low-cost country, owned and operated by the parent company rather than a third-party vendor.

Help Desk

H

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)

H

A model of human interaction with AI where humans provide feedback or validation to improve the model's accuracy.

Hybrid Model

H

An operational structure combining onshore, nearshore, and offshore teams, or remote and in-office work.

Inbound Call Center

I

A call center that primarily handles incoming calls from customers, often for support or inquiries.

Infrastructure as a Service (IaaS)

I

A form of cloud computing that provides virtualized computing resources over the internet.

ISO Certification

I

Certification from the International Organization for Standardization, indicating a company follows global standards for quality, safety, and efficiency.

KPI (Key Performance Indicator)

K

A measurable value that demonstrates how effectively a company is achieving key business objectives.

KPO (Knowledge Process Outsourcing)

K

Outsourcing of core, information-related business activities which are competitively important or form an integral part of a company's value chain.

Labor Arbitrage

L

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)

L

The practice of a law firm or corporation obtaining legal support services from an outside law firm or legal support services company.

Managed Pod

M

A KDCI-specific model where a dedicated team operates with its own internal leadership and QA structure, embedded within your company.

Managed Services

M

The practice of outsourcing the responsibility for maintaining, and anticipating need for, a range of processes and functions.

Multichannel

M

Providing support or sales across multiple distinct channels (email, phone, chat) that may not necessarily be integrated.

Nearshoring

N

The practice of transferring a business operation to a nearby country, often sharing a border or time zone.

NPS (Net Promoter Score)

N

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

O

The practice of basing some of a company's processes or services overseas, so as to take advantage of lower costs.

Omnichannel

O

A cross-channel content strategy that improves the user experience and drives better relationships across all points of contact.

Onshoring

O

Relocating business processes to a lower-cost location inside the same national borders.

Outbound Call Center

O

A call center where agents make outgoing calls to prospective or existing customers.

Outsourcing

O

The business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house.

Process Improvement

P

The proactive task of identifying, analyzing, and improving upon existing business processes within an organization.

Project Management

P

The application of processes, methods, skills, knowledge, and experience to achieve specific project objectives.

QA (Quality Assurance)

Q

A way of preventing mistakes and defects in manufactured products and avoiding problems when delivering products or services to customers.

QC (Quality Control)

Q

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

R

A working style that allows professionals to work outside of a traditional office environment.

RPA (Robotic Process Automation)

R

Software technology that makes it easy to build, deploy, and manage software robots that emulate humans actions.

RPO (Recruitment Process Outsourcing)

R

A form of business process outsourcing where an employer transfers all or part of its recruitment processes to an external service provider.

Scalability

S

The capacity to be changed in size or scale, especially the ability of a business system to handle growing amounts of work.

Seat Leasing

S

A BPO model where the client rents the physical office space and infrastructure, but manages the staff directly.

Shared Services Center (SSC)

S

A centralized unit within a corporation that provides services to the other business units.

SLA (Service Level Agreement)

S

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)

S

A set of step-by-step instructions compiled by an organization to help workers carry out complex routine operations.

Staff Augmentation

S

An outsourcing strategy where external personnel are used to temporarily augment the capacity of your organization.

Talent Acquisition

T

The process of finding and acquiring skilled human labor for organizational needs and to meet any labor requirement.

Telemarketing

T

The direct marketing of goods or services to potential customers over the telephone or the internet.

Time and Materials (T&M)

T

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)

T

A financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system.

Turnover Rate

T

The percentage of employees in a workforce that leave during a certain period of time.

Upselling

U

A sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons.

Virtual Assistant (VA)

V

A generally self-employed individual who provides professional administrative, technical, or creative assistance to clients remotely.

VoIP (Voice over Internet Protocol)

V

A technology that allows you to make voice calls using a broadband Internet connection instead of a regular (or analog) phone line.

Workflow Automation

W

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)

W

An institutional process that maximizes performance levels and competency for an organization.

Zero Trust Security

Z

A security framework requiring all users, whether in or outside the organization's network, to be authenticated, authorized, and continuously validated.