Glossary of Human Capital Industry Terms

Business Process Outsourcing (BPO) • Non-core functions such as the procurement and management of contingent labor are frequently outsourced by large organizations in order to realize cost savings and efficiencies can be realized.

Contingent Workers • A term referring to all manner of non-employee workers: leased labor, Time & Materials, SOW/FFP.

Embedded base • Contingent workers that are currently on assignment

Hybrid • Refers to using multiple sourcing models within a client program.  Typically, the model varies based on the type of skills or services provided.  For example, a program that includes vendor neutral competitive bidding for IT and Engineering positions, and a single provider for Light Industrial positions, is considered a hybrid.

Managed Service Program (MSP) • A solution for procurement and management of contingent workers, provided by an external organization with deep expertise in HR sourcing and procurement.

Master Staffing Supplier • Single staffing company (potentially with associate vendors supporting it) is responsible for the entire staffing and management of contingent labor program.

Vendor Management System (VMS) • A web-based application that serves as the central location for all contingent labor and services procurement management activities.

Vendor Neutral • Refers to a sourcing model where requisitions are transmitted to numerous staffing suppliers simultaneously, prompting them to bid competitively for the job.

Visibility • A clear picture of contingent labor spend and human resource allocation.