Outsourcing involves moving certain activities to another organization. What is the typical effect on the outsourcing organization's core activities?

Outsourcing involves moving certain activities to another organization. What is the typical effect on the outsourcing organization's core activities?

• A. It allows focus on core activities by delegating non-core tasks
• B. It eliminates core activities
• C. It increases the number of core activities to manage
• D. It reduces outsourcing

Answer: (A)

Outsourcing lets a company devote more resources to what it does best by handing off tasks that are routine or non-differentiating to external specialists. By delegating these non-core activities, management can focus attention, expertise, and investment on the core activities that create value and competitive advantage. The core activities stay central to the business; outsourcing doesn’t eliminate them or increase their number. Instead, it reduces the direct workload of non-core tasks, enabling sharper focus on what truly differentiates the organization.

Outsourcing lets a company devote more resources to what it does best by handing off tasks that are routine or non-differentiating to external specialists. By delegating these non-core activities, management can focus attention, expertise, and investment on the core activities that create value and competitive advantage. The core activities stay central to the business; outsourcing doesn’t eliminate them or increase their number. Instead, it reduces the direct workload of non-core tasks, enabling sharper focus on what truly differentiates the organization.