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Define term strategic outsourcing

Define the term strategic outsourcing.

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Strategic outsourcing is defined as the separation of some of the company’s value creation activities in the business and as letting them be performed through the specialist in that activity strategic outsourcing will decrease the cost-structure of company and improve its profitability. Also, strategic outsourcing of the non-core activities assists the company to focus management attention over those activities that one mainly significant for its long term competitive position.

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