Glossary of terms

This glossary is intended to assist you in getting a general understanding of commonly used terms and concepts when dealing with outsourcing and outsourcing governance. We welcome your contribution to further improve and expand the glossary.

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
There are currently 22 names in this directory beginning with the letter D.
Daily Agreed Procedures (DAP)
The DAP is a formal dossier describing the joint operational processes between the service provider and the client. Joint processes are characterized through interfaces with both organisations. The DAP is typically drafted and maintained by the service provider. Examples of joint operational processes are: Incident Management, Problem Management, Service Request Management and Escalation Management.

A mechanism to collect, track and communicate the results of various key services and to link these results to business outcomes  

Any data or information of client or any Eligible Recipient that is provided to or obtained by service provider in connection with the negotiation and execution of this Agreement or the performance of its obligations under this Agreement, including data and information with respect to the businesses, customers, operations, facilities, products, rates, regulatory compliance, competitors, consumer markets, assets, expenditures, mergers, acquisitions, divestitures, billings, collections, revenues and finances of the client or such Eligible Recipient

Data center operations
Information technology work encompasses: computer operator training, disaster recovery/power backups, equipment leases, floor/space management, hardware and network operations, HVAC/Halon, job scheduling, monitoring mainframe/server performance, operations/end user support, security, server uptime, storage management/tape backup, trouble/help desk

Data Processing Agreement (DPA)
Under the General Data Protection Regulation, or GDPR, controllers may only work with data processors that provide "sufficient guarantees to implement appropriate technical and organisational measures in such a manner that processing will meet the requirements of [the GDPR] and ensure the protection of the rights of the data subjects." The recitals specify that the guarantees to be provided relate to expert knowledge, reliability and resources. It's the contoller's obligation to enter into a data processing agreement; a written contract, or other binding legal act under EU or Member State law, with each data processor.

Data subject
Under the General Data Protection Regulation (GDPR) a 'data subject' is an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person.

Deal intent
Intent is a mental attitude with which a party to the contract acts, and therefor it cannot ordinarily be directly proved but must be inferred from surrounding facts and circumstances.
Intent refers only to the state of mind which the service is delivered. It differs from motive or objective, which is what prompts a party to act or to fail to act. Intent is typically measured through 'soft' performance or behavioral indicators like proactiveness, creativity, innovative, accountability, ownership, engagement,  working in a team, service orientation or punctuality.

Declaration of performance
A formal statement by the client which gives the service provider the right to receive payment. To issue a DoP the client needs to have evidence that the products or services are delivered in accordance with requirements.

A defect is a type of nonconformity. It occurs when a product or service fails to meet specified or intended use requirements.

An aspect of the outsourcing contract's Terms and Conditions. A precise description of the terms used within the agreement

Any part of the services or solution that is individually specified in the service schedule

An aspect of the outsourcing contract's Terms and Conditions. Specification of the dates, locations, responsibilities and any conditions relating to delivery of products and services to the site. Sets out the responsibility for any site preparation work required prior to delivery

Delivery Centers / Locations
The facilities/locations from where services are being provided

Variance from a requirement or specification that does not alter the basis of a contract or adversely affects its performance

Direct Operating Cost
Ongoing costs only; excludes margins/markups, centralized corporate overheads, initial investment, set-up costs, and travel costs

Disaster Recovery
Services that encompass getting the organization back to a running state when disaster — small or large — has struck. In the context of outsourcing, this includes security, backup, power management and data recovery. One aspect of disaster recovery that's important in an outsourcing arrangement is whether the service provider has an alternative facility in the event of a disaster — and in how many hours or days a client will be able to recover

Disposal of assets
A discussion point for organizations outsourcing a function, to determine whether the winning service provider will purchase the firm's pertinent assets, whether they'll pay book value or market value and whether they'll pay cash or adjust their pricing to reflect the value of the assets

Dispute Resolution process
Mechanisms and procedures to attempt to resolve differences amicably and avoid costly litigation. A dispute resolution framework might include provisions that spell out the first point of contact either side would reach out to in initially raising a point of dispute. It might also include the path of escalation, as well as timetables for milestones along the problem escalation path

Disputed Charges
Payment of charges that is being withheld between the buyer to service provider because the buyer believes that they are not owed. Typically withholding of payment for disputed charges has a defined path (dispute resolution) to resolve and is not considered a failure in the client's/buyer's obligations to the contract

A term that describes a reduction in staff headcount or other service capacity

Dragnet clause
A contractual clause that provides that the service provider perform services and functions performed by in-house staff during the one-year period preceding the contract, even if they’re not described in the statement of work

Due diligence
A detailed study to verify the capability and quality of service providers prior to contract award. There is no legal definition of due diligence. However, it is generally understood to mean the extent to which a prudent person would carry out investigations on behalf of the party they represent in determining whether a contract they intend to enter into is sound and that all reasonable checks have been carried out to verify information provided by the other party