| Outsourcing is an option for managing internal tasks. A | | | | outsource. This decision-making process involves |
| staffing tool, outsourcing is an arrangement whereby | | | | internal analysis and evaluation, needs assessment and |
| an organization contracts with another organization to | | | | vendor selection, and implementation and management. |
| perform tasks or functions traditionally handled by | | | | Organizations should remember that outsourcing does |
| internal staff (Boone and Kurtz, 1999). | | | | not mean abdicating management responsibility. |
| When an organization decides that more personnel | | | | Therefore, companies should avoid acting compulsively |
| are needed, it must first decide whether to hire more | | | | when deciding on an alternative solution. If the |
| employees, contract workers, or outsource the | | | | requirements, expectations, and needed resources are |
| functions. The focus is on efficiency and | | | | not clearly understood, outsourcing does not improve |
| cost-effectiveness when deciding whether to | | | | the situation and may even cause it to become worse. |