Outsourcing is positively related to improving key competencies of the firm.

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Outsourcing allows firms to focus on their core competencies while entrusting other tasks to specialized external providers. This can lead to improved efficiency, cost-effectiveness, and overall performance, which can enhance the firm's key competencies, such as innovation, differentiation, and customer service. However, outsourcing can also pose risks and challenges, such as loss of control, quality issues, and cultural differences, that need to be carefully managed.

Outsourcing Is Positively Related to Improving Key Competencies of the Firm