Do you understand business abbreviations? Or do you break out in a cold sweat when a business discussion shifts into slang and acronyms? We’re here to make your work life easier – we’ve gathered some commonly used abbreviations in business communication, especially those related to the IT field and IT solutions.
You’ll mainly encounter these in emails and tender documents, so every sales representative, marketer, HR specialist, and other professionals who “dance” around IT—without being developers themselves—will eventually need to quickly learn the most widely used abbreviations in IT, HR, outsourcing, and related fields.
We’ve created a cheat sheet to help you adapt faster. Let’s start with a currently popular term that forms the foundation of our business.
SaaS – „software as a service“
Software as a service refers to software that operates as an online service, eliminating the need for direct installation on a user’s device. It is subscribed to for a specific period, and the client accesses the application/software remotely online. The most common examples include enterprise systems such as Microsoft 365 and Adobe Creative Cloud, but services like Spotify and Netflix can also be considered SaaS.
ERP – „enterprise resource planning“
Enterprise resource planning is an internal business information system that integrates management, purchasing, planning, and organization of company operations. ERP systems come in the form of software or cloud-based services. All employees can access them but may use different modules depending on their job roles. ERP helps efficiently manage a company, set up project management, and improve customer care.
RFP – „request for proposal“
A request for proposal is a document sent by a potential client to a service or product provider, requesting a price quote. It is an official and comprehensive document that should contain all the necessary information from the client to enable the provider to create an accurate price offer.
ESS – „employee self-service“
A way for employees to access HR data directly through a web portal or company intranet. ESS portals allow employees to handle various HR tasks independently. In the U.S., up to 73% of employees prefer using ESS portals because they want control over their HR-related responsibilities. The most common features include sharing employee documents, recording attendance, scheduling work shifts, and accessing company documentation 24/7 from anywhere. We have a separate article on ESS, including a downloadable infographic. Interested? Read more about employee self-service.
T&A – „time & attendance“
A system for tracking attendance. It enables employees to log their work hours, attendance, and absences. Supervisors have access to these records, approve attendance, and manage scheduling. Attendance systems help monitor working hours and presence at the workplace. There is a wide range of attendance tracking solutions, from traditional terminals with chip cards to computer-based software and modern cloud-based solutions accessible from any location and device.
AP – „accounts payable“
Simply put, this refers to the amount of money a company owes to its suppliers, recorded in the form of received invoices. AP also denotes the department responsible for processing and paying these invoices within a company.
API – „application programming interface“
An API is an interface that allows one application to communicate with another system, service, or website. APIs enable developers to integrate functionalities from other applications into their own without having to build them from scratch. For example, two programs can exchange data via an API so that the user does not have to log into both separately. Instead, they can access data from one application within another. This is widely used in corporate systems that aggregate different types of data while ensuring employees can view them all in a single interface.
HRMS – „human resources management system“
A set of software applications used for managing HR tasks and administrative processes within a company. It can include self-service functions, allowing employees to handle certain tasks themselves, thereby streamlining HR operations. HRMS solutions range from simple employee portals to comprehensive platforms that track attendance, onboarding/offboarding, benefits, and other HR functions.
MSS – „manager self-service“
A way for managers to access HR data related to their subordinates, typically through a web portal or company intranet. MSS portals enable managers to perform various HR tasks relevant to their role, such as assigning tasks, approving attendance, and more.
BPO – „business process outsourcing“
Almost every company uses BPO. It refers to the business practice of outsourcing specific operational tasks to an external firm. The most outsourced functions include accounting, taxes, payroll, legal services, IT, HR, marketing, and sales.
TCO – „total cost of ownership“
Remember, the purchase price is not the only expense associated with an asset. It’s always wise to calculate the total cost of ownership (TCO). TCO represents the full cost of owning a product throughout its lifecycle. For example, when buying a car, you don’t only consider the price but also all associated costs, including insurance, maintenance, fuel, ownership transfer, loan interest rates, and highway tolls.
RPA – „robotic process automation“
The automation of business processes through software that operates autonomously. RPA is used for repetitive company tasks that follow defined rules and are prone to human error. Using machine learning, robots handle these tasks instead of employees, reducing mistakes and improving efficiency.
Where is robotic process automation most applied? It is widely used in corporate processes related to accounting and HR. Various applications, software, or cloud-based solutions facilitate automation. Apart from increasing efficiency and minimizing errors, RPA also leads to more engaging and diverse job roles for employees, freeing them from monotonous, repetitive tasks.
HR – „human resources“
Refers to human resources or personnel management. It is most commonly the department within a company responsible for handling employee-related paperwork. Employees interact with the HR department primarily during job interviews, changes in employment status, company events, training sessions, and when leaving the company. The term HR also encompasses the various activities performed by HR professionals and other employees within the department.
NDA – „non-disclosure agreement“
An NDA is a confidentiality agreement signed in business collaborations where sensitive corporate or trade information is shared. It ensures that such information does not fall into the hands of competitors. NDAs are commonly required even at the tender stage for new suppliers. Companies participating in a selection process sign the agreement to prevent the client’s data from being exposed, even if the collaboration does not proceed.
ROI – „return of investment“
ROI measures the return on investment. It is a crucial metric considered in business decisions, evaluating the profitability of investments over time and influencing strategic business planning.
KPI – „key performance indicators“
KPIs are essential for tracking business goals. These measurable values help assess performance. It is important to have a balanced number of key performance indicators —not too few, but not too many. They help monitor various objectives, such as client growth or revenue increase. Different departments within a company can have their own KPIs. For instance, marketing might track website traffic growth, newsletter subscribers, or social media followers on a monthly or yearly basis.
MFA – „multifactor authentication“
Multifactor authentication enhances security by replacing or complementing traditional passwords with additional verification methods. It requires at least two independent forms of identity verification before granting system access. When only two methods are used, it is called two-factor authentication (2FA). If you use TULIP and haven’t enabled MFA yet, contact us—it’s an essential safeguard for employee data. We’ve also written more about MFA on our blog.
SSO – „single sign-on“
Single sign-on allows users to access multiple applications and services with a single username and password. Instead of logging into each application separately, SSO enables users to seamlessly share credentials across different systems and platforms. Want to know more? Check out our article: SINGLE SIGN-ON: How to Increase Security and Employee Convenience in Your Company.
Executive Positions in Companies and Their Abbreviations
CEO – „chief executive officer“
The company’s chief executive officer, essentially the “boss of bosses.” This role is often held by the business owner. The CEO has the final say in all decisions and oversees the execution of the company’s strategic plans.
COO – „chief operating officer“
The right-hand person to the CEO, responsible for managing the company’s daily operations, including administration and planning. The COO typically communicates important changes to employees.
CMO – „chief marketing officer“
Responsible for marketing activities, which also include business strategy, product development, product strategy, overall marketing efforts, and customer care.
CFO – „chief financial officer“
The financial director manages the company’s economic and financial planning, overseeing investments and expenditures.
CIO – „chief information officer“
Oversees the company’s information systems and related planning. The CIO analyzes the benefits of new technologies and manages their implementation within the company.
CTO – „chief technology officer“
Also involved in IT planning, but with a focus on improving technologies that enhance the company’s products and services.
There are many other executive positions in business that use similar abbreviations. We’ve selected the most used ones.
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