c. How does the identification of outsourcing opportunities relate to core competencies and competitive advantages?

Before looking at outsourcing options all critical activities of a business need to be clearly defined. These activities must remain internal to an organization otherwise a risk of losing market position could happen. Often times critical business activities are linked with a business’s core competencies and intellectual properties. Therefore keeping them internal to an organization will keep their competitive advantage. Only non-critical activities should be considered for outsourcing.