outsourcing the performance of value chain activities presently performed in-house to outside vendors and suppliers makes strategic sense when an activity can be performed better or more cheaply by outside specialists. it allows a company to focus on its core business and leverage its key resources. outsourcing won't adversely hollow out the company's technical know-how, competencies, or capabilities while it improves organizational flexibility and speeds time to market. it improves organizational flexibility and speeds time to market. all of these.