Scenario 1.5: HRM Challenges-Outsourcing
Over the past decade CIBC,BMO and RBC financial groups have outsourced some of their human resource services.Recently RBC has brought back several of their HR-related services in-house.
-Please refer to Scenario 1.5.What external organizational factors are influencing these financial groups to outsource?
A)compensation policies
B)human resource information systems
C)global economy
D)demographic and employee concerns

Question

Quizplus · Accepted Answer

The global economy is the external organizational factor that is influencing these financial groups to outsource. As companies expand their operations globally, outsourcing HR services has become a common practice to reduce costs and increase efficiency. Additionally, outsourcing provides access to specialized skills and expertise that may not be available in-house. However, as RBC has brought back some HR services in-house, it indicates that the company may have experienced issues with outsourcing and is trying to improve its HR functions internally.