AbstractIf combined in a line entry, outsource, contract, and temporary work would be the largest element of many private and public organizations' operating statements. These type of employment arrangements are among the fastest growing portions of the workforce, now representing about one in every five workers. Yet despite its growth, outsourcing is frequently poorly controlled, high in cost, and a drain on quality and service performance. Outsourcing can, however, be successfully managed. This article illustrates the philosophies that managers must adopt and the steps they must take to help turn outsourcing into a competitive advantage for their organizations.