The key to outsourcing is to purchase from outside only those activities that are not key to the company's distinctive competencies.

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Outsourcing should involve purchasing activities that are not central to the company's core competencies. This allows companies to focus on what they do best and leave other tasks to outside firms that may be more specialized or cost-effective. By only outsourcing non-core activities, companies can better maintain control over their overall operations and maintain their competitive advantages.

The Key to Outsourcing Is to Purchase from Outside Only