Associate Professional in Human Resources 2025 – 400 Free Practice Questions to Pass the Exam

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What is the primary reason companies engage in outsourcing?

To take advantage of advanced technology

To align all functions with the company's ideals

To save money on labor-intensive work

The primary reason companies engage in outsourcing is to save money on labor-intensive work. By outsourcing specific tasks or functions to external vendors or service providers, companies can reduce operational costs significantly. This often occurs because these external providers can perform the work more efficiently due to specialized skills, economies of scale, or lower labor costs in different geographical regions.

For many businesses, the goal is to allocate resources effectively while maintaining quality and productivity. Outsourcing allows companies to focus on their core competencies while leaving ancillary tasks to those who can perform them at a lower cost. This financial incentive is a driving factor behind many outsourcing decisions, leading to improved profit margins and increased competitiveness in the market.

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To increase the company’s employee count

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