Professional services, on the other hand, are knowledge-based, such as recruiting or tax planning. These functions are easily outsourced and produce minimal risk. Supportive functions are essential, but not a core activity. Failure in this area would cause serious damage to the business. In this case, a manager's time and resources could be better spent on activities fundamental to the business, recruiting this expertise externally.
Strategic functions provide an actual or potential source of competitive advantage.
One reason for outsourcing strategic functions is to achieve better value for strategic thinking and capabilities. Core functions are the primary business activity and should never be outsourced. Outsourcing allows the company to focus on its core activities while support services are assumed by an outside provider. It can enable an organization to accelerate its growth and success through expanded investment in areas offering the greatest competitive advantage. Outsourcing providers can bring worldwide, world-class capabilities.