10-9 HRM Planning: Outsourcing Outsourcing: managers can decide to contract with outside workers rather than hiring them a Outsourcing is more flexible for the firm Outsourcing often provides human capital at a lower cost Outsource problems: managers lose control over output a Outsource contractors are not committed to the firm Unions typically are against outsourcing that has potential to eliminate member's jobs " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 200010-9 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 HRM Planning: Outsourcing ◼ Outsourcing:managers can decide to contract with outside workers rather than hiring them. ◼ Outsourcing is more flexible for the firm. ◼ Outsourcing often provides human capital at a lower cost. ◆ Outsource problems: managers lose control over output. ◼ Outsource contractors are not committed to the firm. ◆ Unions typically are against outsourcing that has potential to eliminate member’s jobs