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Glossary

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Glossary of software outsourcing terms

Each glossary entry defines one term a buyer meets when scoping, contracting or running an outsourced software project. It gives a concise definition, why the term matters, an example in context and the common misreadings, then names the decisions the term affects and links the guide that covers each decision in depth.

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Acceptance criteria
Acceptance criteria

Acceptance criteria are the specific, testable conditions a piece of delivered software must meet before the buyer accepts it, written and agreed before work starts so both sides judge whether a milestone is finished the same way.

Fixed-scope contract

Fixed-scope contract

A fixed-scope contract is a software agreement that fixes what will be built and the acceptance tests for it before work starts, so both sides agree in advance what counts as finished and what happens if the brief changes partway through.

 Model Context Protocol (MCP)

Model Context Protocol (MCP)

The Model Context Protocol (MCP) is an open standard that lets an AI assistant connect to external tools and data sources, such as a database or a calendar, through one consistent interface instead of a separate custom integration for every system it needs to reach.

 Offshore development centre

Offshore development centre

An offshore development centre is a dedicated software team based in another country that works as a long-running extension of a company's own engineering function, under one accountable delivery owner, rather than a group of contractors assembled for a single project.
Retrieval-augmented generation (RAG)
Retrieval-augmented generation (RAG)

Retrieval-augmented generation (RAG) is a technique that gives an AI model your own documents to read before it answers, so its response is grounded in current, specific information instead of only the general knowledge it learned during training.

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