Word or Acronym Definition ASP Application Service Provider: Software application that resides outside the user's firewall. ASPs are not installed on the user’s network, rather they are installed on the host’s network and accessed via a secured Internet connection. Client Pay When the client company absorbs the cost associated with the VMS. Typically these costs are 1.75 to 3% of total spend. Co-employment Retention of the same contingent worker for a length of time that can cause the Internal Revenue Service and the Judicial system to rule that the contingent worker was essentially no different than a permanent employee. Unfortunately there are many different opinions about what length of time cause co-employment exposure for client companies. Configuration A function often provided by the Managed Services Provider to set the parameters of the VMS to mimic the client’s desired staffing processes. Consolidated Billing A time and cost savings process usually performed by the Managed Services Provider. All of the disparate supplier's invoices are converted to a common format, common invoicing schedule, audited, and presented to the client as a single bill. The client saves time and dollars by only having to generate one check for contingent worker services. Contingent Worker Temporary worker, temp, contractor, consultant, etc. Any human resource providing service to a client, but through an intermediary. Commodity When there is perceived limited difference between products and/or services and the buyer’s primary buying decision is price. E-Procurement Using a Web-based system to obtain bids and purchase products and/or services over the Internet rather than dealing directly with the supplier’s sales force. Global 1000 The largest companies in the world based on market capitalization (share price x number of shares outstanding). Hard Dollar Savings The specific, measurable dollars saved via the implementation of a Managed Services Program, includes lowered hourly rates, volume discounts, rebates, reduced accounts payable costs, and other tangible savings. Integration The automated exchange of data between the VMS and the client’s time keeping, financial, and project management systems. Managed Services Managed Services is the concept that one agency is chosen as a partner to work with the employer to manage procurement and administration of contract labor. In most cases, the partner is paid a management fee or given increased opportunities to generate revenue. Usually the agency assigns one or more staff (depending on the volume of contract usage) on-site with the customer to work with purchasing, human resources, and the departmental managers involved, and so provide a one point of contact solution. Any other agencies that support the customer also work through the partner. Maverick A hiring manager who does not adhere to purchasing products or services from the designated list of company approved suppliers. Mavericks typically purchase from friends and tend to pay more compared to the negotiated prices available from preferred suppliers. MSP Managed Services Provider/Program: Service organization hired by the client to provide guidance with the VMS selection, configuration, installation, and ongoing use of the VMS. MSPs also perform services above and beyond the capabilities of the VMS to help the client reduce costs. Often MSPs are staffing firms that have expanded the set of services offered to clients. Needs Assessment A defined service performed by the Managed Service Provider to document the client’s current and desired staffing process and then make custom recommendations based on client’s needs. Open VMS When a Managed Services Provider is contractually able to recommend one of several VMS solutions that would best solve a client’s needs. Often, the Managed Services Provider is financially aligned with a specific VMS and therefore unlikely to recommend other VMS solutions. Rate Card A pre-established rate assigned to contingent worker job descriptions. Just as permanent jobs often have a grade level and corresponding pay range, contingent worker pay rates can be standardized throughout the client company. Reporting The ability of the Vendor Management System to create analysis and provide data including supplier performance and financial statistics that surround the use of contingent workers. Reverse Auction A feature included in many Vendor Management Systems that allows the cadre of suppliers to view rates of candidates submitted by competing suppliers and then adjust the price of their submitted candidates to be more price competitive. Think of Ebay working in reverse. ROI Return On Investment: A measure of time and dollars to analyze the benefit of spending on a new product or service. Soft Dollar Savings The savings that occur due to time saved and increased efficiencies via the implementation of a Managed Services Program, including less time to identify and hire workers, less time to construct reports, and other difficult to specifically measure but certain savings. Specialty Vendor A supplier that does not provide a broad range of products or services; rather it is typically an expert in a niche. Spend Measured in dollars, the amount or cost incurred when a company engages a temporary worker. SPOC Single Point of Contact: An individual or small team that acts as a funnel for all relevant inbound and outbound information. Vendor Employment agency, staffing firms, talent provider, or supplier. Vendor Neutral Ensuring that all staffing vendors are competing on a level playing field. Specifically if the MSP is a staffing firm, the MSP has no advantage over the other staffing firms. VMS Vendor Management System: Software applications that help manage the process of acquiring human resources and managing the ongoing financial impact of the human resources. VMS1 Vendor Management Services: VMS is also used to include both software and services supporting this process. VOP Vendor on Premise: The primary supplier or primary coordinator of human resource procurement works at the client’s physical location. Often, the VOP is the only tier one supplier and all other staffing firms work through the VOP.

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