Outsourcing the performance of value chain activities presently performed in-house to outside vendors and suppliers makes strategic sense when

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All of these reasons are valid justifications for outsourcing activities to outside vendors and suppliers. Companies should only outsource activities that can be performed better or more cheaply by outside specialists, and that won't harm their core competencies or technical know-how. Outsourcing can also reduce risk exposure to changing technology and buyer preferences, while allowing a company to focus on its core strengths and critical activities.

Outsourcing the Performance of Value Chain Activities Presently Performed In-House