Glossary

Business processes that were originally performed in-house now moved overseas.

What you have to forgo if you choose to do A rather than B; the value of the next best alternative that is foregone whenever a choice is made.

A structure put in place by a businesses to organise how tasks are divided and how resources are used to achieve the business’s goals and objectives. Tall (vertical) organisational structures exist in businesses with many levels of authority between senior management and workers, for example, in larger corporations. Flat (horizontal) organisational structures, common in small–medium enterprises, are those with fewer levels between management and workers.

Any task that could be performed by employees within an organisation being contracted out to a third party.