BPO & Outsourcing Glossary A–Z
Plain-English definitions of every term you'll encounter when hiring an offshore team.
- 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.
- 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.
- 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.
- Dedicated Team
- An offshore team working exclusively for one client — fully integrated with their processes and tools. This is Quota Solutions' model.
- 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.
- HIPAA
- Health Insurance Portability and Accountability Act — US law protecting patient health information. Healthcare BPOs must be compliant.
- 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.
- 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).
- 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.
- 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.
- Virtual Assistant (VA)
- A remote worker handling admin tasks for one client. Typically a freelancer — distinct from a managed BPO team.