13.4 outsourcing

Question 1

Outsourcing

Answer 1

• Use of third party specialist for key business function
• Offshore outsourcing reduce costs

Question 2

Outsourcing Human Resource Functions

Answer 2

• Recruitment
• Induction
• Training

Question 3

Using Contractors

Answer 3

• Contractors are an external provider of services to business
• Temporarily fill a position
• No “on costs”

Question 4

Using Contractors: DOMESTIC

Answer 4

• Improves productivity of business’s service without the resource scale normally required to achieve this level
• Leaves compliance related activities to experts
  E.G. Payroll management

Question 5

Using Contractors: GLOBAL

Answer 5

1. Process Outsourcing involves repetitive documented work
   E.G. Customer complaints
2. Project Outsourcing involves intellectual property and operates over a long time
   E.G. Marketing