BPO & Outsourcing Glossary A–Z

Plain-English definitions of every term you'll encounter when hiring an offshore team.

A

Agent (BPO)
A team member at a BPO who performs tasks on behalf of a client — answering calls, processing data, or managing inquiries.
AHT — Average Handle Time
Average time an agent spends on one customer interaction, including talk time, hold time, and after-call work.
Attrition Rate
Percentage of BPO staff who leave within a given period. Dedicated team models typically have lower attrition than shared pools.

B

Back Office
Business functions without direct customer contact — data entry, billing, compliance, admin. The most commonly outsourced category.
BPO — Business Process Outsourcing
Contracting specific business operations to a third-party provider. Covers support, finance, HR, and more.

C

Call Center
A centralized office handling inbound or outbound calls on behalf of a client. Modern BPOs handle far more than just calls.
CSAT — Customer Satisfaction Score
Metric measuring customer satisfaction after an interaction. Typically a 1–5 or 1–10 post-interaction survey.
CRM — Customer Relationship Management
Software for managing customer interactions. Common tools: HubSpot, Salesforce, Zoho.

D

Dedicated Team
An offshore team working exclusively for one client — fully integrated with their processes and tools. This is Quota Solutions' model.

F

FCR — First Contact Resolution
Percentage of issues resolved on first interaction. High FCR = well-trained team.
FTE — Full-Time Equivalent
Unit representing one full-time employee (40 hrs/week). Offshore pricing is often quoted per FTE.

H

HIPAA
Health Insurance Portability and Accountability Act — US law protecting patient health information. Healthcare BPOs must be compliant.

K

KPI — Key Performance Indicator
Measurable metric evaluating BPO performance. Common: CSAT, AHT, FCR, accuracy rate.
KYC — Know Your Customer
Regulatory process verifying client identity. Critical in banking, fintech, insurance — frequently outsourced.

N

NDA — Non-Disclosure Agreement
Legal contract preventing a BPO from sharing client data. Standard in all reputable engagements.
Nearshore
Outsourcing to a nearby country. For US: Mexico, Colombia, Latin America. Contrast with offshore (Philippines, India).

O

Offshore
Outsourcing to a distant country — most commonly Philippines or India for US businesses. Highest cost savings.
Onboarding
Integrating a new offshore team member into client tools and processes. Typically 2–4 weeks.

S

SLA — Service Level Agreement
Contract defining performance standards — response time, accuracy, availability. Protects both parties.
Staff Augmentation
Adding offshore staff to supplement an existing team, rather than replacing it.

V

Virtual Assistant (VA)
A remote worker handling admin tasks for one client. Typically a freelancer — distinct from a managed BPO team.