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Besides cost and expertise, which situation pushes a firm to outsource an HR activity?
AThe requirement is too large to handle in-house on time
BThe union has asked for the work to be given away
CThe firm wishes to stop paying any employee benefits
DThe activity has been removed from the job analysis
Answer & Solution
Correct answer: A. The requirement is too large to handle in-house on time
1. Cost saving and provider expertise are the two usual reasons for outsourcing.
2. A third arises when HR requirements are extraordinary and too overwhelming to execute in-house.
3. Here the issue is timing rather than skill, because the in-house team could do the work but not fast enough.
4. Outsourcing does not end the firm's benefit obligations, so option C confuses who administers a benefit with who pays for it.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 8 "Managing Human Resources and Labor Relations", section Outsourcing HR and Technology_
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