Question

linela Insurance needs to hire twenty accountants immediately to support its accounts receivable process. The hiring and training 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 ________.

Answer 1

Answer:

outsourcing

Explanation:

This question is incomplete, there are five options:

A. headhunting

B. outsourcing

C. merging

D. specializing

E. diversifying

In this case, linela Insurance can use outsourcing, instead of to spent time and money, finding, hiring, and training employees, they can use this option.

Outsourcing is a process where we hire an external company to complete a job or an entire process.

We could hire an accounting company, we should delegate all this process, but if we don't select the correct option, we could lose control and money.

We could use this option in other departments or processes.

For example:

Our company has a manual process, and we would like to automate it, but we don't enough resources to hire a programmer.

If we use the outsourcing option, we could find a programming company.

This external company offers: License, installation, training our employees, and 24/7 support.

In this example our company will save a lot of time, with the external only we will pay a year's license.

If we hire a programmer, we will pay a monthly salary, vacations, inability, the programmer will start the process from the beginning.

Disadvantage

We could not control our new system, if the external company has a problem, we could lose all our processes, data, and investment.