Residual competences in outsourcing are typically considered which type of activities?

• A. Non-core activities that can be outsourced
• B. Core activities that must be kept in-house
• C. Strategic capabilities that differentiate the firm
• D. High-risk activities requiring close control

Answer: (A)

Residual competences are the activities a firm treats as non-core and not central to its competitive advantage, so they can be outsourced to external providers. Outsourcing these tasks lets the organization focus its internal resources on what truly differentiates it, while benefiting from external specialists’ efficiency, scale, and flexibility. The other options describe activities that are typically kept in-house because they are strategic, differentiating, or high-risk and require tighter control.