Companies often treat outsourcing as de facto solution, without careful evaluation and understanding the true strategic rationals for pursuing it. Outsourcing brings in companies‘ business significant structural changes, which require a cohesive master plan, i.e. a strategic outsourcing plan. If a company starts outsourcing initiative, steps for success are: knowledge, planning, sourcing and execution. The success is primarily dependent on explicit planning and identification of all possible opportunities. Strategic outsourcing plan must be done from the perspective that it will help to grow business instead of focusing only on cost cutting, leaving out from consideration long term business implications.