Key Terms You Should Know if You Outsource IT Services to India

So, you are planning to outsource your IT services for the first time? Seems like a pretty good idea, after all, it can save you quite a lot of stress and money. But wait, before you go ahead and do it there are some key terms related to outsourcing industry that you need to know about.

Key Terms You Should Know if You Outsource IT Services to India

What are those terms; let us have a look –

1. Offshoring

Offshoring is the term used to define the process of transferring jobs outside the country of origin. It works like this – you set up a remote office in some other country, hire domestic staff over there and send a few management people from the office to run the offshore process and get the work done.

2. Project management outsourcing

In simple terms, project management outsourcing means hiring an external service provider to manage and implement the activities related to managing projects for a company. This is generally done to ensure effectiveness in handling the projects. It has become a trend for large business to go for project management outsourcing to get more experience and expertise from a contractor company for handling their client projects.

3. NDA

Also referred to as the confidential agreement, a Non-disclosure agreement, or NDA as they usually call it, is the documented contract between the company and the contractor who is outsourcing the services. It is used to signify the confidentiality in the relation between the two parties and ensures that the information shared between the two is not leaked or made available to any other resource.

4. SLA

When you outsource service provider from a third party, you need to have something to keep a check on the quality of service to expect. This is exactly what an SLA or a service level agreement is all about. It defines a certain set level of service that the contractor will provide to the business over the course of the contract.

5. KPO

KPO stands for Knowledge Process Outsourcing. It is generally used to define the process when a company hires external parties to complete its research projects, analytics, and similar other thought-intensive works. KPOs have seen immense popularity over the course of time, with some of the big names going for knowledge process outsourcing services.

6. KT

KT stands for Knowledge Transfer. In layman terms, it means the task of bringing the outsourcing staff up to the speed at which the internal processes are run. Basically, it deals with transferring the knowledge on what remains in-house and what needs to be transferred to the third party or outsourcing contractor.

7. ODC

A development center set up by a third party contractor for a business, at an offshore location is termed as Offshore Development Center. What makes this center so specific is the fact that the contractor provides a workforce dedicated entirely and specifically to a single client to make sure that a steady workflow is maintained for the client.
There you have it – the list of key terms that you need to know about before you outsource your IT services. If you are planning to outsource your business process, then it is a must to make yourself well-versed with these terms.

When it comes to outsource IT services to India, we at Your Team in India can help you in the best possible manner. We have a team of seasoned professionals who know their job well. So, if you are looking to outsource your key business IT processes, drop us an email at and we will get back to you.

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