Non-core competenciesrefer to functions that aresupportive in nature, such as payroll, IT support, or benefits administration. They are necessary butnot mission-criticalto an organization’s competitive advantage.
Outsourcing them allows HR and leadership tofocus resources on strategic, core areas(like innovation or customer service), while operational tasks are handled by external experts.
GPHR Study Guide Extract – Strategic Global Human Resources / Outsourcing and Shared Services:
“Organizations often outsource non-core functions to reduce costs and enhance focus on strategic activities. These functions are typically those that do not contribute directly to the primary value proposition or customer experience.”
Hence, outsourcing works best for roles thatsupport operationsbut don't affect thecore business identity.
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