Question

XYZ company outsources its security to a security company. Select the probable reasons behind this move.

• A. XYZ company will no longer have to spend its valuable time in recruiting and managing security guards.
• B. XYZ company will not be required to pay for the health, pension, and provident fund of security guards.
• C. XYZ company is doing this only to uphold its brand value.
• D. XYZ company is doing this to decrease its efficiency at work.

Answer 1

Answer: (A), (B)

XYZ company will not be required to pay for the health, pension, and provident fund of security guards.

If XYZ company wants to employ security guards, it would have to spend valuable time recruiting and managing them. The company would also be required to pay for their health, pension, and provident fund along with the salary. However, by outsourcing the security services to a security agency, the company would save a lot of time and resources.