Application Service Provider (ASP)
An ASP is a company that rents applications and related services over
the Internet. Examples include email, payroll processing and ERP
Business Process Outsourcing (BPO)
BPO is the outsourcing of back office and front office functions
typically performed by white collar and clerical workers. Examples
include accounting, human resources and medical coding and
Competitive insourcing is a process whereby internal employees engage in
bidding to compete with competitive, third-party bidders for a defined
scope of work. See also insourcing.
Contract manufacturing is the outsourcing of a manufacturing job to an
onshore or offshore third-party with the necessary infrastructure and
know how to perform the job.
Co-Sourcing or Cosourcing
Cosourcing is where a business function is performed by both internal
staff and external resources, such as consultants or outsourcing
vendors, with specialized knowledge of the business function.
An outsourcing solution in which the customer entrusts to an external
services provider the responsibility for operations and maintenance of
one or more facilities.
Insourcing is the transfer of an outsourced function to an internal
department of a company, to be managed entirely by employees. The term
has also been used to describe foreign companies locating facilities in
the United States and employing U.S. workers.
Nearshore outsourcing or 'nearshoring' is outsourcing within nearby
territory, accessible by short travel or telephone in the same or
neighboring time zone.
Offshore outsourcing or 'offshoring' is outsourcing overseas or in a
separate country. Outsourcing to a contiguous country may be considered
nearshore outsourcing (see above).
Service Level Agreement (or SLA)
An SLA is a contract or addendum to a contract that defines the type,
value and conditions of the outsourcing services to be provided.
Typically, SLAs address quality of service conditions, such as response
time, availability, speed, et cetera.
Shared services is the outsourcing of a business function within an
enterprise to a highly skilled internal department or group. For
example, the purchasing department at one plant may provide purchasing
services to all other plants within a given manufacturing company.
Shared services may also be provided to third parties.