Final answer:
Outsourcing HR to a lower-cost labor market is possible because it offers cost savings, access to talent, and flexibility for companies.
Step-by-step explanation:
HR outsourcing to a lower-cost labor market is possible for several reasons:
- Cost savings: Companies can reduce labor costs by hiring workers from countries where wages are lower than in their home country. This can result in significant cost savings for the company.
- Access to talent: Some countries may have a larger pool of skilled workers in specific industries. By outsourcing to these markets, companies can access talent that may be scarce or expensive to find locally.
- Flexibility: Outsourcing allows companies to be more flexible in scaling their workforce to meet changing demands. If there is a need for additional employees, they can be easily hired from the lower-cost labor market.