Activities that do not rely directly on the firm's core competencies or transaction-specific assets can often be performed more effectively and efficiently through outsourcing.

Question

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Outsourcing non-core activities allows firms to focus on their core competencies and strategic objectives, while benefiting from the specialized expertise and economies of scale offered by outsourcing partners. This can lead to greater efficiency, cost savings, and innovation.

Activities That Do Not Rely Directly on the Firm's Core