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A cell phone company has decided to have an independent human resources company perform its human resources functions. This arrangement is cheaper for the cell phone company and alleviates the need to build up its own human resources department. The cell phone company is participating in:__________

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Answer:

The correct answer is letter "D": strategic outsourcing.

Explanation:

Strategic outsourcing is the strategy by which companies hire a third party, usually in a different country, to be in charge of part of their operations just like the firms would in their original country but at cheaper costs. Surpassing stiff governmental rules also motivate institutions to outsource their operations strategically. The problem with outsourcing relies on quality control of the operations being outsourced.

Thus, by hiring an independent company to be in charge of its Human Resources (HR) operations, the cell phone company is engaging in strategic outsourcing.

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