Gears Inc., an automobile manufacturing firm, has hired an external agency to handle its employee compensation function so that its HR employees can focus on other tasks, such as legal compliance and employee training. The firm has made this change for two reasons: to increase workforce efficiency by reducing the time spent on the compensation function and to reduce the dissatisfaction caused by the repetitious nature of this function. In the given scenario, Gears Inc. is employing _____.

Outsourcing Is a practice in business or corporate organizations that involves hiring a third party outside an organization to perform some job functions or handle some operations instead of handling it within an organization.

Advantages of outsourcing.

1.it lower cost.

2.Improved rate of efficiency.

3.Accelerated time for market.

4.Improved skills and resources, etc.

Examples of task that could be outsourced includes recruitment exercise, customer care and call services, information technology services,etc.

Ritmeks Ritmeks · Answer 2 · 2020-03-24T11:42:24+01:00

Answer:

Outsourcing

Explanation:

Outsourcing is a business practice in which a company transfers over the responsibility of planning an activity or project that could easily be carried out internally to another company.

It also involves transferring of employees and assets from one organisation to another.

Outsourcing is a business practice employed by many companies to get top candidates without being directly involved in the process of sourcing and selecting.