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 20 names in this directory beginning with the letter M.

Manageability of a contract refers to the extent to which a contract provides concrete handles to influence/direct the behaviour of a supplier in unforeseen circumstances. The manageability of a contract is defined by its fit for purpose and fit for use in the everyday management of service provider relationships. The contract must support and enable successful delivery of business outcomes, avoiding the need to fall back on legal action.

Leadmark evaluates the manageability of a contract on 4 aspects:

1. Focus on business objectives
2. Alignment of service and financial model
3. Control balance
4. Structure and readeability

Fit for purpose
A contract is fit for purpose (useful) when it focuses on business objectives (1) and when the service and financial model are well aligned (2).
• ad 1. it doesn't make sense for a contract to focus on low cost if you're actually looking for state of the art quality and innovation
• ad 2. it doesn't make sense if what you're paying for has no clear relationship with the products and services you're getting

Fit for use
A contract is fit for use (useable) when it has a measured out control balance (3) and when its well structured and readable (4)
• ad 3. the controls aren't aligned to current contract risks they are obsolete and result in unnecessary costs
• ad 4. if the contract isn't accessible or understandable people don't read it and what is unknown doesn't get done.

Managed Govenance Services (MGS)
Managed Governance Services is an alternative to Do-It-Yourself (DIY) governance. It removes the burden of non-core governance functions from organizations, enabling them to focus on more critical activities and strategic decision-making, instead of time-consuming data crunching. Managed Governance Services offers organizations advantages in terms of flexibility, agility and the potential to realize significant cost savings. It also enables companies to easily increase the number of suppliers, contracts, working relationships that need to be managed and governed, without increasing the internal headcount.

Managed security services (MSS)
Services that provide indepth analysis to find intrusion threats and respond to security breaches. MSS contains elements such as Web-enabled, realtime security information, best-practice policies, in-depth monitoring, safeguard management capabilities, and strong incident response and computer forensic services.

Managed Spend
Managed spend refers to the expenditure incurred by a company to procure third-party goods and services

Managed Third-party Offshoring
Managed third-party offshoring refers to an offshore business model in which the customer provides full/part-time resources on the ground to facilitate transition, relationship management and transfer of organization and domain knowledge to an offshore service provider

Managed-service Fee
Pricing structure where buyer pays the service provider a fixed fee for a predetermined volume of purchasing activity with a "dead band" cushion

Massive outsourcing
Refers to the process in which a majority of the business support processes are outsourced in one transaction or a small number of related transactions. The purpose of massive outsourcing is to drive shareholder value by shifting to others the operational responsibility for critical operations that do not deliver comparative advantage, or in which the company chooses not to invest due to comparatively low returns on investment.

Master Service Agreement (MSA)
Main document that governs the relationship and contrct between the buyer and the service provider

Maverick Spend
Refers to the expenditure incurred by a company to procure goods and services outside the preferred process or system

Conciliation and mediation are often terms used interchangeably. Both involve the appointment of a third party to assist the disputing parties to reach a settlement of their contractual difference. The mediator is not given any power to impose a settlement. Although mediation has no legal standing per se, the disputing parties may make the settlement legally binding by entering into a formal agreement

Transfer of service delivery of a process from client to the service provider of services

Minimum Service Level
The quality level of service at which an increased impact is applied

Most Favored Customer
One who receives the best price / performance for a service

Multi-client implementation
Multi-client refers to the technology implementation in which same instance of the technology solution is used for more than one client

Multi-instance Solution
In a multi-instance solution, separate applications are set up for different client organizations

Multi-national Corporation (MNC)
A corporation or enterprise that manages production establishments or delivers services in at least two countries

Multi-process Outsourcing
Outsourcing of many business processes

A strategy that treats a given function — such as IT — as a portfolio of activities, some of which should be outsourced and others of which should be performed by internal staff. This approach moves away from the idea that all of a function should be viewed as a commodity, easily handed over to a service provider. Also known as "selective sourcing."

Multi-tenant Solution
A single instance of the application runs on a vendor's servers, serving multiple client organizations (tenants). Multi-tenancy is contrasted with a multi-instance architecture where separate software instances (or hardware systems) are set up for different client organizations. With a multi-tenant architecture, a software application is designed to virtually partition its data and configuration so that each client organization works with a customized virtual application instance