Today,many companies use PeopleSoft and EDS to avoid maintaining a human resource management system.By doing this,these firms are
A) engaging in strategic outsourcing.
B) increasing their level of vertical integration.
C) offshoring their core activities.
D) engaging in unrelated diversification.

Question

Quizplus · Accepted Answer

Rather than developing their own human resource management systems, some firms outsource these non-core activities to companies like PeopleSoft (owned by Oracle), EDS (owned by HP), or Perot Systems (owned by Dell), who can leverage their deep competencies and produce scale effects. This is referred to as strategic outsourcing.

Today,many Companies Use PeopleSoft and EDS to Avoid Maintaining a Human