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Kryger [21]
3 years ago
7

Linela Insurance needs to hire twenty accountants immediately to support its accounts receivable process. The hiring and trainin

g of the accountants requires a significant investment of funds and time, which the company cannot afford. Linela decides to hire another accounting firm to manage its accounts receivable process and thereby save time and money. This process is known as ________. A. headhunting B. outsourcing C. merging D. specializing E. diversifying
Computers and Technology
1 answer:
sukhopar [10]3 years ago
3 0

Answer:

Outsourcing

Explanation:

Outsourcing is a business practice to use third party companies outside business to complete task which were previously done by in-house teams.

Outsourcing is a good cost cutting technique while not compromising very much on the services provided by the business.

There are many pros and cons associated with this technique

Following are some pros

  1. Outsourcing some work increase the efficiency of in house team as they have less work load and they can better focus on their work
  2. Outsourcing work significantly cuts the cost with access to more skilled expertise.
  3. Outsourcing let's you better risk manage. As risk management is shared between both the companies.

Following are some cons

  1. Biggest con of outsourcing is loss of control.When you give your product to a third company to do it for you, you loss control of the product.
  2. With less involvement of the owning business innovation process may see slow growth in out sourced projects
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