A firm which outsources its works requires ___________. A. more employees B. less employees C. skilled employees D. semi-skilled employees

The correct answer is: B. less employees.

Outsourcing is the practice of contracting an external company to perform some or all of a company’s business functions. This can include tasks such as manufacturing, customer service, IT support, and accounting.

There are several reasons why a company might choose to outsource its work. One reason is to reduce costs. By outsourcing to a lower-cost country, a company can save money on labor costs. Another reason is to improve efficiency. A specialized outsourcing company

may be able to perform a task more efficiently than the company itself. Finally, outsourcing can allow a company to focus on its core competencies. By outsourcing non-core activities, a company can free up its resources to focus on what it does best.

When a company outsources its work, it typically requires fewer employees. This is because the outsourcing company will be responsible for hiring and managing the employees who perform the outsourced tasks. The company that is outsourcing its work will only need to manage the relationship with the outsourcing company.

There are some potential drawbacks to outsourcing. One is that the company may lose control over the quality of the work that is being done. Another is that the company may become dependent on the outsourcing company. If the outsourcing company goes out of business or is unable to meet the

company’s needs, the company may be in a difficult position.

Overall, outsourcing can be a good way to reduce costs, improve efficiency, and focus on core competencies. However, it is important to carefully consider the potential drawbacks before making a decision to outsource.

Here is a brief explanation of each option:

• Option A: More employees. This is not the correct answer because outsourcing typically results in fewer employees.
• Option B: Less employees. This is the correct answer because outsourcing typically results in fewer employees.
• Option C: Skilled employees. This is not necessarily the case. The outsourcing company may hire skilled employees, but it may also hire less skilled employees.
• Option D: Semi-skilled employees. This is not necessarily the case. The outsourcing company may hire semi-skilled employees, but it may also hire less skilled employees.