What best describes a hollow organisation?

• A. Core activities are kept in-house and non-core activities are outsourced.
• B. All activities are outsourced.
• C. Non-core activities kept in-house.
• D. Only strategic partnerships are involved.

Answer: (A)

A hollow organization keeps its core activities in-house and outsources non-core activities to external specialists. This means the business focuses its resources on the parts of the value chain that deliver the most competitive advantage and direct value to customers, while outsourcing routine, support, or non-differentiating functions to others who can perform them more efficiently. By retaining control over the core activities, the organization maintains strategic direction, ownership of key processes, and smooth integration with its customer interface. Outsourcing the rest provides cost savings, scalability, and access to external expertise. This contrast with fully outsourcing everything or keeping all activities in-house explains why this description best fits a hollow structure.