What Is the Primary HR Challenge of Outsourcing

question 5

Multiple Choice

What is the primary HR challenge of outsourcing?

• A) It raises labor costs because of overtime requirements.
• B) A firm is still accountable for the actions of its subcontractors, but it exercises less control over them.
• C) Subcontractors tend to take on less work than they can handle, which means that the firm needs to hire additional workers.
• D) Customers tend to be more satisfied with subcontractors than with regular employees, which creates conflict in the workplace.

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Definitions:

Lost Profits

Refers to the income that a business could have earned but was unable to due to some form of disruption or another party's actions.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.

Law of Restitution

A legal principle aimed at preventing unjust enrichment, requiring a party to return goods or compensation to another from whom they were unjustly received.

Contract Law

A body of law regulating the formation, performance, and enforcement of contracts between parties.