Core competences in outsourcing are

• A. Fundamental to a firm's competitive advantage - should not be outsourced
• B. They are easily outsourced
• C. They are not important
• D. They are only IT

Answer: (A)

The idea being tested is that core competences are the capabilities that give a business its distinctive strength and competitive edge. These are the activities that are hard for competitors to imitate and that underpin the company’s value proposition. Because they drive differentiation and sustainable advantage, they should be kept in-house and continually developed. Outsourcing them risks losing control, sharing sensitive knowledge, and weakening what makes the firm unique. So saying that core competences are fundamental to a firm’s competitive advantage and should not be outsourced is the best answer. Core competences aren’t easily outsourced, they’re not unimportant, and they aren’t limited to IT—they can span areas like design, brand, and crucial production capabilities.