Total Cost of Ownership (TCO)

A business analysis that assesses cost to include direct cost (purchasing price) and indirect cost (related to the use of a service or product). In temporary staffing services, this is often used by employers to ask temporary staffing agencies for proposals to decrease the total cost of using temporary employees, besides the hourly bill rate. Options to reduce TCO are implementing specific Sourcing Models (see definition), close monitoring (e.g., consolidated reporting), or additional services like wage management.

Source: Staffing Industry Analysts

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