Vendors use these terms as if everyone agrees on what they mean. Each entry below gives the definition, what it actually costs, and the case where it is the wrong answer.
Business process outsourcing is delegating an entire business function, such as customer support or accounts payable, to an external provider.
An employer of record is a third party that legally employs someone on your behalf in a country or state where you have no legal entity.
Nearshoring means hiring in nearby countries with substantial time-zone overlap rather than distant low-cost regions.
An offshore development center is a dedicated team in another country working exclusively for one client, usually hosted and administered by a local partner.
Offshoring means moving work to a distant country, usually for a significant labor cost difference.
Recruiting as a service provides sourcing and screening on a subscription rather than a per-placement commission.
Recruitment process outsourcing hands part or all of your hiring process to an external provider, who works as an extension of your talent function.
A shared services center consolidates internal functions such as IT, finance, or HR into a single internal unit serving the whole organization.
Software development outsourcing is delegating some or all of a software build to an external company rather than employees.
Staff augmentation means adding external engineers to your existing team, working under your management and inside your process.
A virtual offshore development center is a dedicated offshore team assembled and run remotely, without a shared physical office.
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