Which type of competency would most likely be outsourced to an expert?

• A. Core competencies (Never outsourced)
• B. Complementary competencies (Would outsource to an expert)
• C. Residual competencies (Outsource to anyone)
• D. All are equally outsourced

Answer: (B)

Firms decide what to outsource by looking at how strongly a capability contributes to what makes the business unique. Complementary competencies are those that support the main offerings but aren’t themselves the source of differentiation. Outsourcing these to an expert gives access to specialized skills, better quality, and efficiency while preserving the organization’s core strengths.

Core competencies are the distinctive capabilities that give the business its competitive edge, so they’re usually kept in-house to maintain control and advantage. The idea behind residual or other non-core activities is more about what still needs management and quality, rather than simply handing everything to any external provider; the decision varies with risk, needed control, and standards.

So, the type most likely to be outsourced to an expert is the complementary one, because it augments the business without compromising its unique position.