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 12 names in this directory beginning with the letter L.
Labor Arbitrage
The financial benefit of buying a comparable service elsewhere to exploit the difference in pricing. In outsourcing, the term is often used to describe the savings an organization will enjoy when it hires work to be done in labor markets offshore, where salaries are less than they are domestically

Leadmark is boutique services firm specializing in targeted run stage solutions that address the governance challenges of sourced services and supplier relationships.
Its vision is that simplification of sourcing contracts and governance processes, underpinned by innovative cloud-based technology will enable new – more productive – ways of cooperation between clients and their services providers that last and yield better outcomes.

Legal framework
The legal framework refers to the body of law that governs the outsourcing contract

The legal obligation arising out of a failure to honor one’s legal liability to another party, such as by contract or in tort

Lift-Shift Delivery Model
 A delivery model characterized by the service provider taking over the buyer's existing people, process, as well as technology in order to use the acquired infrastructure as a platform to provide outsourcing services

Limitation of Liability
An aspect of the outsourcing contract's Terms and Conditions. Sets out the extent to which the service provider's liability may be limited

Local buyer
Buyer entity having operations in a single country only

Local Scope
Geographic scope of a transaction where services in a single country are covered

Local Transaction
A transaction where delivery occurs in a single country

The study of the flow of goods and services from their point of origin to their point of consumption or use. Also known as "supply chain."

Long-term capacity planning
Evaluating organizational needs for a given function or service, based on historic use, staff growth or reduction and business intentions. Five-year or 10-year planning was once viewed as crucial; now three-year planning is much more common, since organizations adapt so rapidly to changing business conditions

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