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Typically, organizations begin this transformation by taking a long, hard look at the way they run all of their operations and their business processes. The result of this intensive self-analysis is a crystallized focus on the specific elements of the business model - the strategic core competencies - that enable it to deliver a unique value to the client and create a sustainable competitive advantage. Elements of the business that are not an integral part of these core competencies are then viewed as candidates for outsourcing if there are clear-cut business benefits to be gained in terms of efficiency, productivity and organizational effectiveness.
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