Activity-Based Costing: assesses the costs associated with certain aspects of
company operation
Barriers to Outsourcing: often baseless fears within the company that act as
obstacles to outsourcing human resources
Business Process Outsourcing (BPO): analyzing business processes and then working
with business providers to regenerate and outsource them
Commercialization: a positive byproduct of outsourcing; when a company generates
equity value from its internal operations
Dismissal: the process of removing employees from their employment
Empowerment (Enablement): empowering people with more responsibility and control
in their given field
E-sourcing: HR outsourcing service providers with a web interface
Gainsharing: contract obliging client and service provider to share the financial
profit generated by their cooperation
Make Versus Buy: dilemma often faced by customer when contemplating on “making” or
performing a certain activity in-house or “buying” the service
Outsourcing: external contractors undertake work originally performed
in-house
Performance-Based Pricing: compensation is linked to specific performance or
outcome
Scope of Services: agreement summing up the services provided by the HR
outsourcing party
Service Level Agreement: defines the intended or expected level of service
Service Provider: the third party that provides outsourcing services for a
company
Value Proposition: an estimation of the value an organization is expected to gain
from outsourcing certain services
