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 E.
Internet-based outsourcing that takes advantage of the application service provider (ASP) delivery model. This approach enables the delivery of business process outsourcing over the Internet

The ability for a service provider to "earn-back" service credits applied for missed service levels typically by over achieving service levels in subsequent periods to when the credit was applied

Enterprise Content Management

Economies of scale
A term used to describe the efficiencies a service provider or internal department can achieve through standardization, commodity negotiation and adherence to process management  

Economies of Scope
Savings realized by a service provider due to the expansion of service offering (e.g., performs multiple HR functions for a buyer rather than a single function)

Efficiency sourcing deal
A sourcing relationship in which the focus is on efficiency of operations — primarily in the form of cost reduction or cost control. According to Gartner, these are the most prevalent type of sourcing engagement

Electronics Funds Transfer

Electronic Data Interchange (EDS)
The transfer of data between different companies using networks

Emerging Processes
Processes that are included in more than half of the surveyed outsourcing deals but lesser than "mature" processes. They also have lesser extent of process support getting outsourced and are still in flux between "bundled process with technology" versus "only-technology" solution being provided by service provider

Employee Self-Service (ESS)
Giving employees the ability to manage their personnel matters online, just as they manage bill paying and banking online. Typically, the organization installs software or licenses access to a portal

End-to-end process
A holistic process which may combine process and/or activities from more than one function. For example, Order-to-Cash (O2C), Procure-to-Pay (P2P), or Record-to-Report (R2R)

The conditions under which the terms, conditions, and obligations of the parties under an agreement will be adopted and confirmed by a court of competent jurisdiction

Enhancement sourcing deal
A sourcing relationship in which the focus is on improving the current state of an IT service or business process. The goal is to improve upon the current state and introduce enhanced operational performance or outcome

Enterprise Customer Management Outsourcing (ECMO)
Refers to multi-scope outsourcing of customer management processes with end-toend integration across the enterprise. ECMO focuses on migrating from customer transactions to customer relationships, thus developing a single view of the customer across multiple business units, functions, and channels

Enterprise Resource Management (ERM)
An umbrella term that refers to the management of information from any or all of an organization's customers, service providers, business partners and employees

Enterprise Resource Planning (ERP)
​A business support system that maintains in a single database the data needed for a variety of business functions such as manufacturing, supply chain management, financials, projects, human resources and customer relationship management. The modular software design implies that a business can select the modules they need, mix and match modules from different vendors, and add new modules of their own to improve business performance

To apply equally to all parties

Escalation procedure
The process set up to define the steps taken when service levels don't meet upon standards. This may involve determining fault for missed measures, reporting, problem resolution within a specified time and — when the problem still isn't resolved — executive intervention on both the client and service provider sides

Service provider given uncontested rights for their services

Execution gap
The execution gap is the gap between contractual promises made and results that get actually delivered. The contract is half the story. The other half is execution. Closing the execution gap is to achieving the expected contract value over time. An effective measure to bridge the execution gap, is contract operationalization.

When moving from contracting to execution sourcing engagements face common gaps (risk) that may derail the engagement.

These gaps are grouped into 3 areas:
1. Context
2. Content
3. Process

1. Context
Frame gap - Perspective and definition for understanding the relationship and heuristic gap rules for behaving within it, driving day-to-day interaction.
Expectations gap - Benchmark against which the actual performance (or early signals alerting to performance difficulties), is assessed by the partners.
Organization context gap - Structure and process for decision making, work organization and performance, and organizational learning compatibility between the partners.
Confidence gap - Self-confidence allows strong personal commitments, decisiveness and personal risk taking in cooperation. Lack of confidence makes wholehearted cooperation difficult.

2. Content
Skill understanding gap - Need to combine and blend differentiated skills between partners, in particular where process integration is required.
Task definition gap - Self-confidence allows strong personal commitments, decisiveness and personal risk taking in cooperation. Lack of confidence makes wholehearted cooperation difficult.

3. Process
Information gap - Need to share information between the partners across functions and processes.
Time gap - Need to keep balance of cost and benefits in perspective over time, for each partner and between partners.

Exit plan
The plan developed for coping with the end of the contract — whether because the term is up or because termination clauses have been invoked. It's best to assume you'll be moving to a new service provider rather than simply renewing the contract. Think about what the organization will require to maintain service levels and to make a smooth transition to the next provider

Expatriate / Expat Staff
Employee seconded or transferred from the parent to the GIC entity and associated primarily with the management of offshore operations