Explore common terms used in software development, IT outsourcing, technology, employment, payroll, and remote team management. This glossary provides short and practical explanations of concepts frequently used across the technology industry and MWDN resources.

0–9

1099 Employees

A 1099 worker is an independent contractor in the United States who provides services to a company without being classified as a traditional employee. Contractors are generally responsible for managing and paying their own taxes.

A

Agent of Record (AOR)

An Agent of Record is an organization authorized to represent a company or individual in specific administrative, contractual, insurance, or employment-related matters.

Agile Methodology

Agile is an iterative approach to software development that divides work into smaller cycles and emphasizes frequent delivery, collaboration, customer feedback, and continuous improvement.

API

An API (Application Programming Interface) is a defined set of rules that allows different software applications and services to communicate, exchange data, and use each other’s functionality.

Artificial Intelligence

Artificial Intelligence (AI) refers to computer systems designed to perform tasks associated with human intelligence, including learning, reasoning, pattern recognition, language processing, and decision-making.

AR/VR

Augmented Reality (AR) adds digital elements to a user’s view of the real world, while Virtual Reality (VR) creates an immersive computer-generated environment that users can interact with.

B

Backend

The backend is the server-side part of a software application responsible for business logic, databases, authentication, APIs, data processing, and communication with the frontend.

Big Data

Big Data refers to very large or complex datasets that require specialized technologies and methods to store, process, manage, and analyze effectively.

Blockchain

Blockchain is a distributed digital ledger in which records are stored in linked blocks and shared across a network, making historical data difficult to alter without network consensus.

C

CI/CD

CI/CD stands for Continuous Integration and Continuous Delivery or Deployment. It is a set of development practices that automate software building, testing, integration, and release processes.

Cloud Computing

Cloud computing is the delivery of computing resources such as servers, storage, databases, networking, and software over the internet instead of relying entirely on local infrastructure.

Custom Software Development

Custom software development is the process of designing and building software specifically around the requirements, workflows, and business objectives of a particular organization or group of users.

Cutoff Date

A cutoff date is a predefined deadline after which transactions, working hours, payroll changes, expenses, or other information are processed in a subsequent billing or payroll period.

Cybersecurity

Cybersecurity is the practice of protecting computer systems, applications, networks, and data against unauthorized access, attacks, disruption, theft, and other digital threats.

D

Data Management

Data management covers the processes and technologies used to collect, organize, store, secure, maintain, integrate, and make data available throughout its lifecycle.

Data Science

Data science combines statistics, programming, mathematics, and domain knowledge to analyze data, identify patterns, build predictive models, and support better decision-making.

Dedicated Development Teams

A dedicated development team is a group of technology professionals assigned to work continuously on a client’s products or projects, typically operating as an extension of the client’s internal team.

DevOps

DevOps combines software development and IT operations practices to improve collaboration, automate delivery processes, and make software releases faster, more reliable, and easier to maintain.

E

Employer of Record (EOR)

An Employer of Record is a third-party organization that legally employs workers on behalf of another company and typically manages payroll, taxes, benefits, contracts, and employment compliance.

F

FinTech

FinTech, or financial technology, refers to software and digital technologies used to provide, automate, improve, or transform financial products and services.

Full-Time Equivalent (FTE)

Full-Time Equivalent is a measurement used to express employee workload. One FTE generally represents the working hours of one full-time employee over a defined period.

Full-Time Hours

Full-time hours refer to the standard number of working hours associated with full-time employment. The exact number depends on the employer, employment agreement, and applicable local regulations.

G

Gross Income

Gross income is the total amount earned before taxes, benefits, contributions, and other deductions are subtracted.

Gross-to-Net (GTN)

Gross-to-Net describes the calculation that converts an employee’s gross compensation into the final net amount received after applicable taxes, contributions, benefits, and deductions.

I

Internet of Things (IoT)

The Internet of Things is a network of physical devices equipped with sensors, software, and connectivity that allows them to collect, exchange, and act on data.

IRS Form 1099-MISC

Form 1099-MISC is a U.S. Internal Revenue Service tax form used to report certain types of miscellaneous payments made during a tax year when applicable reporting requirements are met.

IRS Form W-4

Form W-4 is a U.S. tax form employees complete to provide employers with information used to calculate federal income tax withholding from their paychecks.

IT Staffing

IT staffing is the process of finding and providing technology professionals with specific skills to supplement a company’s workforce on a temporary, long-term, or project-based basis.

M

Machine Learning

Machine Learning (ML) is a field of artificial intelligence in which algorithms learn patterns from data and use those patterns to make predictions, classifications, or decisions without being explicitly programmed for every scenario.

Mobile App Development

Mobile app development is the process of designing, building, testing, deploying, and maintaining software applications for smartphones, tablets, and other mobile devices.

O

Outstaffing

Outstaffing is a cooperation model in which external specialists work as part of a client’s team while administrative, employment, or operational responsibilities are handled by an external provider.

P

Per Diem

Per diem is a fixed daily allowance or reimbursement used to cover eligible expenses incurred by employees or contractors while traveling or working away from their normal location.

Post-Tax Deductions

Post-tax deductions are amounts subtracted from an employee’s compensation after applicable payroll taxes have already been calculated and withheld.

Professional Employer Organization (PEO)

A Professional Employer Organization provides outsourced HR and employment services such as payroll, benefits administration, compliance, and workforce management, commonly through a co-employment arrangement.

R

Remote Work

Remote work is an arrangement in which employees or contractors perform their work outside a traditional company office, typically using digital communication and collaboration tools.

RPA: Robotic Process Automation

Robotic Process Automation (RPA) uses software bots to automate repetitive, rule-based digital tasks such as entering data, processing documents, transferring information, and generating routine reports.

S

Scalability in Software Development

Scalability is a software system’s ability to accommodate increasing users, transactions, data, or workloads without unacceptable loss of performance or reliability.

Social Security Wages

Social Security wages are the portion of an employee’s earnings in the United States that is subject to Social Security tax under applicable federal rules and annual limits.

Software as a Service (SaaS)

Software as a Service is a software delivery model in which applications are hosted by a provider and accessed by users over the internet, commonly through a subscription.

T

Tech Profiles Expertise

Tech profiles describe specialized technology roles and the combinations of skills, experience, responsibilities, and technical knowledge typically required for those positions.

U

UI/UX Design

UI/UX design combines User Interface design, which focuses on the visual and interactive elements of a product, with User Experience design, which focuses on usability, accessibility, structure, and the overall user journey.

V

Version Control Systems

A version control system records changes made to source code and other files over time, allowing teams to collaborate, compare versions, manage branches, and restore previous states when necessary.

W

W-2 Employee Overview

A W-2 employee is a worker classified as an employee in the United States whose employer generally withholds applicable payroll taxes and reports annual wages and tax information using Form W-2.

W-9 Form

Form W-9 is a U.S. tax form used to request a person’s or business’s taxpayer identification information, commonly when establishing certain independent contractor or business relationships.

Web Architecture

Web architecture is the structural design of a web application, including its frontend, backend, databases, APIs, infrastructure, integrations, and the way these components interact.

Cloud Architect

A cloud architect is an IT professional who designs and oversees cloud infrastructure, services, security, integrations, and technical strategies for applications and organizations.

Data Scientist

A data scientist analyzes complex datasets using statistics, programming, machine learning, and domain expertise to discover patterns, create predictive models, and generate actionable insights.

Dedicated Project Manager

A dedicated project manager is responsible for planning, coordinating, and overseeing a specific project or client account, including scope, priorities, schedules, resources, communication, risks, and delivery.

DevOps Manager

A DevOps manager leads the processes and teams responsible for software delivery infrastructure, automation, CI/CD, cloud environments, system reliability, and collaboration between development and operations.

Android Engineer

An Android engineer is a software developer who designs, builds, tests, and maintains applications for devices running the Android operating system.

Programmer Engineering Analyst

A programmer engineering analyst combines software development with technical analysis, helping evaluate requirements, design solutions, implement applications, and improve existing systems and processes.

Scrum Master

A Scrum Master helps a Scrum team follow Agile practices, facilitates team processes and meetings, removes obstacles, and supports continuous improvement without directly managing the team’s work.

Senior Business Intelligence Consultant

A senior business intelligence consultant helps organizations transform business data into useful insights by designing analytics solutions, data models, reports, dashboards, and decision-support processes.

Service Delivery Manager

A service delivery manager oversees the quality and continuity of services provided to clients, coordinates delivery teams, monitors performance, manages expectations, and helps resolve operational issues.

Test Automation Engineer

A test automation engineer designs and maintains automated tests that verify software functionality, identify defects, support continuous integration, and reduce the amount of repetitive manual testing.

Work Permit

A work permit is an official authorization that allows an individual to work legally in a particular country or jurisdiction, subject to the conditions established by local immigration and employment laws.

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