Outsourcing presents a number of challenges to Human Resources in that:

• A. it raises labor costs while lowering production costs.
• B. a firm is still accountable for the actions of its subcontractors, but it exercises less control over them.
• C. employees require close monitoring by HRM, as subcontractors tend to take on less work than they can handle, meaning more subcontractors doing less work.
• D. it increases customer use of service centers because customers tend to be more satisfied with subcontractors than with regular employee service representatives.
• E. all of the above