As the vice-president of HR for Woodmere Production,Inc.,you are presenting a proposal to Woodmere's top management for outsourcing many of your department's administrative HR functions to vendors.You argue that HR vendors have greater expertise than your in-house staff and that outsourcing will allow you to spend more time on the strategic aspects of HR.But,another key selling-point to top management will be

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The key selling-point to top management for outsourcing HR functions to vendors should be the reduction in labor costs in the HR department. While expertise and strategic aspects are important, ultimately the decision to outsource functions should be driven by cost savings. A reduction in labor costs can be achieved through outsourcing, as vendors can often provide services at a lower cost than in-house staff due to economies of scale and specialization.

As the Vice-President of HR for Woodmere Production,Inc