Offshore Staffing Glossary
Every term you’ll encounter when building an offshore team — defined clearly, without jargon, and with context for Australian businesses
#bpo
Core Outsourcing & Staffing Terms
Contracting a third party to manage entire business processes end-to-end. The provider controls the process, people, and output. Common in customer service, payroll, and IT support. Compare with Offshore Staffing, where the client retains direct control
#BOT
Core Outsourcing & Staffing Terms
A model where a provider builds and operates an offshore team, then transfers full ownership to the client after a defined period (typically 18–36 months). Growing in popularity for mid-market Global Capability Centre setups. Also called Build-Own-Transfer.
#Team
Core Outsourcing & Staffing Terms
Dedicated Team
Offshore professionals who work exclusively for one client under that client’s direct management. Unlike BPO, dedicated team members are recruited for your specific requirements, work only on your projects, and build institutional knowledge over time. Staff Domain’s core model.
#EOR
Core Outsourcing & Staffing Terms
A third-party organisation that becomes the legal employer of offshore staff, handling contracts, payroll, tax, benefits, and labour law compliance. The client manages day-to-day work; the EOR manages employment. Eliminates the need for a local entity. Staff Domain operates as EOR in the Philippines and South Africa. The global EOR market is valued at $5.59 billion (2025), growing to $10.46 billion by 2033 at 6.8% CAGR.
#FTE
Core Outsourcing & Staffing Terms
FTE (Full-Time Equivalent)
A unit measuring one full-time employee’s workload. In offshore staffing, pricing is typically quoted per FTE per month. One FTE = 8 hours/day, 5 days/week.
#GCC
Core Outsourcing & Staffing Terms
An offshore office owned and operated by the parent company. Over 8,500 GCCs operate globally with 1,000+ established in the last 3 years. Many mid-market companies now build micro-GCCs (<100 FTEs) using providers like Staff Domain for setup and EOR.
#KPO
Core Outsourcing & Staffing Terms
KPO (Knowledge Process Outsourcing)
A higher-value subset of BPO involving knowledge-intensive processes: financial analysis, legal research, data analytics, engineering design. Requires specialised education and expertise.
#LPO
Core Outsourcing & Staffing Terms
LPO (Legal Process Outsourcing)
Outsourcing legal support functions including document review, contract management, legal research, compliance monitoring, and paralegal services. Growing rapidly as law firms seek capacity solutions.
#ITO
Core Outsourcing & Staffing Terms
ITO (IT Outsourcing)
Outsourcing IT functions including software development, infrastructure management, helpdesk support, cloud services, and cybersecurity. The largest BPO sub-segment globally.
#HRO
Core Outsourcing & Staffing Terms
HRO (Human Resources Outsourcing)
Outsourcing HR functions including recruitment, payroll processing, benefits administration, training, and compliance management.
#Services
Core Outsourcing & Staffing Terms
Managed Services
An outsourcing model where the provider delivers specific outcomes or SLAs, managing team and process independently. Client defines what; provider decides how.
#MSA
Core Outsourcing & Staffing Terms
MSA (Master Service Agreement)
The overarching contract between client and provider governing the entire offshore engagement. Covers liability, IP, confidentiality, termination, dispute resolution. SOWs sit underneath the MSA for specific scopes.
#SOW
Core Outsourcing & Staffing Terms
SOW (Statement of Work)
A document defining specific scope, deliverables, timelines, and acceptance criteria for a particular project or engagement within the MSA framework.
#Nearshoring
Core Outsourcing & Staffing Terms
Nearshoring
Locating operations in a nearby country with similar timezones and cultural proximity. For Australian businesses: New Zealand or selected Southeast Asian countries.
#Staffing
Core Outsourcing & Staffing Terms
Building a dedicated team in another country that works exclusively for your business under your direct management. Provider handles employment infrastructure; you retain full operational control. Staff Domain’s operating model.
#Offshoring
Core Outsourcing & Staffing Terms
Offshoring
Moving business processes or operations to another country for cost, talent, or capacity advantages. Can be done through BPO, offshore staffing, or captive centres
#Onshoring
Core Outsourcing & Staffing Terms
Onshoring / Reshoring
Bringing previously offshored operations back to the home country. Often driven by quality concerns, supply chain risk, or political pressure.
#RACI
Core Outsourcing & Staffing Terms
RACI Matrix
Responsibility assignment chart defining who is Responsible, Accountable, Consulted, and Informed for each task or decision. Essential for clarifying roles between onshore management and offshore team.
#SLA
Core Outsourcing & Staffing Terms
SLA (Service Level Agreement)
Formal contract defining expected service levels: metrics, measurement methods, and consequences for non-compliance.
#Augmentation
Core Outsourcing & Staffing Terms
Staff Augmentation
Adding temporary or project-based offshore professionals to fill skill gaps or handle capacity peaks. Shorter-term than dedicated offshore staffing.
#Leasing
Core Outsourcing & Staffing Terms
Staff Leasing
Provider supplies pre-vetted employees for a defined period. Less customised than dedicated team recruitment.
#Captive
Core Outsourcing & Staffing Terms
Virtual Captive
A hybrid model where the provider operates a dedicated team on the client’s behalf with the look and feel of a captive centre, but without the client establishing a local entity. Combines captive-level control with provider-managed infrastructure.
#bpo
Philippine Employment Terms
Mandatory annual bonus equal to 1/12 of total basic salary earned during the calendar year. Required by Presidential Decree 851 — legally mandated, not discretionary. Must be paid by 24 December. Not a ‘Christmas bonus’ (which is separate and optional). For Australian employers: this is already included in Staff Domain’s monthly fee.
#SSS
Philippine Employment Terms
Government social insurance covering sickness, maternity, disability, retirement, death, and funeral. 2025 rate: 15% of monthly salary credit (employer ~10%, employee ~5%). Minimum salary credit: PHP 5,000; maximum: PHP 35,000. Mandatory for all employed Filipinos
#SSS
Philippine Employment Terms
National health insurance. 2025 rate: 5% of basic monthly salary, split equally employer/employee. Income ceiling: PHP 100,000/month. Covers hospitalisation, outpatient, and other medical expenses.
#Pag-IBIG / HDM
Philippine Employment Terms
Mandatory savings and housing programme. Employee contributes 2%; employer matches 2%. Maximum contribution base: PHP 5,000/month. Provides home financing, short-term loans, and savings.
#DOLE
Philippine Employment Terms
Department of Labor and Employment
Primary Philippine government agency for employment regulation, labour standards, and worker protection. Issues Department Orders including DO 174 regulating contracting and subcontracting.
#CHED
Philippine Employment Terms
Commission on Higher Education
Government agency overseeing higher education. The Philippines has 1,977 Higher Education Institutions producing ~700,000 graduates annually.
#TESDA
Philippine Employment Terms
Technical Education and Skills Development Authority
Government agency managing technical-vocational education and skills certification. Provides industry-aligned training programmes feeding the BPO workforce.
#PEZA
Philippine Employment Terms
Manages special economic zones offering tax incentives for registered enterprises. PEZA approved ₱58.95 billion in investments in Q1 2025 alone — 249% year-on-year increase.
#SIL
Philippine Employment Terms
Service Incentive Leave
5 paid days leave per year for employees with 1+ year of service. Unused SIL convertible to cash at year-end.
#SIL
Philippine Employment Terms
Night Differential
10% premium on hourly rate for work between 10 PM–6 AM. Relevant for Philippine teams working Australian-aligned shifts.
#Philippines
Philippine Employment Terms
Holiday Pay
Regular holidays (New Year’s, Independence Day, etc.): 200% if worked, 100% if not worked. Special non-working days: 130% if worked, no pay if not worked. 18+ official holidays per year.
#sp
Philippine Employment Terms
Separation Pay
Required for redundancy/retrenchment: one month’s pay per year of service or one month’s pay, whichever higher. Not required for just cause termination (serious misconduct, willful disobedience).
#CREATE MORE Act
Philippine Employment Terms
CREATE MORE Act
Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act. Signed November 2024. Key: 20% corporate tax for Registered Business Enterprises, 5% Special Corporate Income Tax for exporters, up to 27 years of incentives, institutionalised WFH flexibility.
#IBPAP
Philippine Employment Terms
IT and Business Process Association of the Philippine
The governing industry body for the Philippines IT-BPM sector. Publishes the Philippine IT-BPM Roadmap and industry statistics. Reports $40 billion revenue and 1.9 million employees (2025).
#UIF
South African Employment Terms
Unemployment Insurance Fund
Mandatory unemployment insurance. Employer 1% + employee 1% of remuneration. Covers unemployment, illness, maternity, and adoption benefits.
#SDL
South African Employment Terms
Skills Development Levy
1% of total monthly payroll paid by employers to fund skills development. Employers with payroll below ZAR 500,000/year exempt. Funds managed by Sector Education and Training Authorities (SETAs).
#COIDA
South African Employment Terms
Compensation for Occupational Injuries and Diseases Act
Workers’ compensation framework. Employers pay annual assessments to the Compensation Fund based on industry risk classification. Covers medical, temporary/permanent disability, and death from workplace incidents.
#BCEA
South African Employment Terms
Basic Conditions of Employment Act
Primary employment legislation: maximum 45 hours/week, overtime at time-and-a-half, 21 consecutive days annual leave, and defined notice periods. Foundation of South African employment rights
#BPESA
South African Employment Terms
Business Process Enabling South Africa
National industry body for the GBS/BPO sector. Promotes South Africa as an offshoring destination, publishes industry research, coordinates government incentives. Reports 270,000+ employees, R6 billion export revenue (2024).
#the dtic
South African Employment Terms
Department of Trade, Industry and Competition
South African government department providing financial incentives and policy support for the BPO sector. Currently in discussions to offer more substantial incentives for high-value digital services and Tier II/III city expansion.
#Monyetla Work Readiness Programme
South African Employment Terms
Monyetla Work Readiness Programme
Government initiative increasing the pool of BPO-employable talent through structured work readiness training. Part of the broader government strategy to grow the sector to 775,000 jobs by 2030.
#ISO 27001
Security & Compliance Terms
International standard for Information Security Management Systems (ISMS). 93 Annex A controls covering access control, cryptography, physical security, incident management. Independent audit + annual surveillance + 3-year recertification. Staff Domain is certified.
#ISO 27701
Security & Compliance Terms
ISO 27701
Extension to ISO 27001 specifically for Privacy Information Management Systems (PIMS). Adds controls for processing personal data as both controller and processor. Increasingly requested by clients in healthcare, finance, and legal.
#SOC 1
Security & Compliance Terms
System and Organization Controls 1
Audit report on controls relevant to financial reporting. Important for offshore teams handling accounting, payroll, or financial data. Type I = point-in-time; Type II = over a period.
#SOC 2
Security & Compliance Terms
SOC 2
Audit framework evaluating Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, Privacy. ~80% overlap with ISO 27001. Type II (period-based) is the standard expected by enterprise clients.
#Zero-Trust Architecture
Security & Compliance Terms
Zero-Trust Architecture
Security model: ‘never trust, always verify.’ Every access request authenticated, authorised, encrypted regardless of origin. Staff Domain implements via ThreatLocker (whitelisted applications only) and Cisco Umbrella (DNS-layer filtering).
#DLP
Security & Compliance Terms
Data Loss Prevention
Technologies and policies preventing sensitive data from leaving organisational control. Monitors data in use (endpoints), in motion (network), and at rest (storage). Staff Domain implements through ThreatLocker and Teramind.
#MFA
Security & Compliance Terms
Multi-Factor Authenticatio
Authentication requiring 2+ verification factors: something you know (password), have (phone/key), or are (biometric). Mandatory across all Staff Domain systems.
#VPN
Security & Compliance Terms
Virtual Private Network
Encrypted tunnel for secure remote network access. SD Summit includes always-on VPN for all team member devices.
#Endpoint Protection / EDR
Security & Compliance Terms
Endpoint Detection and Response
Security software monitoring and protecting individual devices (endpoints) from threats. EDR provides continuous monitoring, threat detection, and automated response on each Staff Domain device.
#RBAC
Security & Compliance Terms
Role-Based Access Control
Access model where permissions assigned to roles, not individuals. Users access only what their role requires. Ensures offshore staff access only client-authorised systems and data.
#SIEM
Security & Compliance Terms
Security Information and Event Management
Platform aggregating and analysing security event data from across the network in real-time. Detects anomalies, correlates events, and triggers alerts for security teams.
#APPs
Security & Compliance Terms
Australian Privacy Principles
13 principles under Australia’s Privacy Act 1988 governing collection, use, disclosure, and storage of personal information. APP 8 governs cross-border disclosure — the primary
framework for offshore data handling. Australian entities remain accountable for overseas recipient breaches.
#NDB Schem
Security & Compliance Terms
Notifiable Data Breache
Australia’s mandatory breach notification scheme. Covered organisations must assess eligible breaches within 30 days and notify affected individuals and OAIC. Applies to any Australian business sharing personal info offshore.
#DPA
Security & Compliance Terms
Data Privacy Act 2012 / RA 10173
Philippines’ comprehensive data protection law. 72-hour breach notification to National Privacy Commission, mandatory DPO appointment, aligned with GDPR, APEC, and Australian APPs.
#GDPR
Security & Compliance Terms
General Data Protection Regulation
The EU’s data protection regulation. Relevant if your Australian business handles data of EU residents or operates in EU markets. The Philippines’ DPA and South Africa’s POPIA share significant alignment with GDPR principles.
#POPIA
Security & Compliance Terms
Protection of Personal Information Act
South Africa’s data protection legislation. Mirrors GDPR in structure with 8 conditions for lawful processing. Enforced by the Information Regulator. Relevant for offshore teams handling personal data in South Africa.
#HIPAA
Security & Compliance Terms
Health Insurance Portability and Accountability Act
US healthcare data protection law. Relevant if your offshore team handles US patient data. Requires Business Associate Agreements, encryption, access controls, and audit trails.
#PCI DSS
Security & Compliance Terms
PCI DSS
Security standard for organisations handling credit card data. 12 core requirements covering network security, data protection, access control, monitoring, and policies. Required for offshore teams processing payment information.
#Clean Desk Policy
Security & Compliance Terms
Clean Desk Policy
Workplace security policy requiring all sensitive materials cleared from desks at end of day. Standard practice in Staff Domain offices to prevent unauthorised physical access.
THE FIRST STEP
Know the Terms. Know the Advantage.
Ready to move from research to action? Tell us your industry and roles, and we’ll show you exactly what offshore staffing looks like for your business.
