Question

_____is commonly used by IT company to assign their costly activities to outside provider for the purpose of cost saving as well as using of HR expertise in other companies.
a. Planning
b. Decentralization
c. Restructuring
d. Outsourcing

Answer 1

Answer:

The required correct option is (d) Outsourcing

Explanation:

Outsourcing:

• Businesses utilize outsourcing to reduce labor costs, including staff pay, overhead, equipment costs, and technology expenditures.

• Enterprises can use outsourcing to scale back operations, concentrate on their core competencies, and offload less important tasks to other companies.

• On the negative side, when several parties have access to sensitive information, communication between the organization and outside providers may be challenging, and security risks may increase.

• Some businesses use outsourcing as a means of rearranging their financial sheet.

• When it comes to paying taxes, a corporation may gain by outsourcing staff, such as with 1099 contract workers.

Therefore, (d) Outsourcing is commonly used by IT company to assign their costly activities to outside providers for the purpose of cost-saving as well as using of HR expertise in other companies.

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