Outsourcing allows a firm to shed functions it does not perform well in order to focus on its areas of strength.

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Outsourcing is a business strategy where a company contracts out certain functions or tasks to external third-party providers. Companies often outsource tasks that are not their core competencies, in order to focus on their areas of expertise or strategic priorities. By doing so, they can reduce costs, improve efficiency, and access specialized expertise that may not be available in-house. Therefore, outsourcing allows a firm to shed functions it does not perform well or efficiently, which can ultimately help it to improve its performance and competitiveness.

Outsourcing Allows a Firm to Shed Functions It Does Not