The procurement of services from external providers previously handled by internal staff is?
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Answer: A. outsourcing
Explanation
Outsourcing is the practice of procuring services from external providers that were previously handled by internal staff. Companies delegate non-core business functions to specialized external vendors to improve operational efficiency. Contracting out internal tasks allows organizations to concentrate their internal resources on core competencies. Outsourcing became a dominant business strategy as companies sought to reduce overhead and labor costs. Commonly outsourced functions include payroll processing, customer support, and information technology maintenance. Service level agreements legally bind the external provider to deliver specific quality standards for the contracted work.
A manufacturing firm might outsource its food cafeteria services to a specialized hospitality contractor. Strategic outsourcing enables smaller companies to access advanced expertise without hiring full-time specialists. Poorly managed outsourcing arrangements can sometimes lead to communication gaps and loss of quality control. Offshoring involves relocating business processes to a foreign country while maintaining internal company ownership. Alternative staffing refers to non-traditional employment arrangements like temporary work rather than vendor procurement. None of above is incorrect because outsourcing precisely matches the procurement of internal services externally.
- Subject
- Business and Management
- Category
- Human Resource Management
- Topic
- —
- Difficulty
- medium
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