The Outsourcing as we know is the process of involvement of a third-party service provider to carry out the internal functions of the company for rendering maximum profits and sales. The selection of the outsourcing partner should be made wisely by checking onto the past records of work with other clients and the expertise with which they perform their tasks. There have been times when company selects the outsourcing partner on the basis of low bidding rates and then they have to face problems like quality deterioration, delay submission of products etc.The process of outsourcing was introduced during the 1970's and became popular by the 1990's. The outsourcing of products has its own set of advantages and disadvantages that it provides to the company.The scope and future use of outsourcing is immense as it provides with the facility of low cost investment and efficient product output. It provides the companies with the services that they don't have inhouse for the efficient product output which helps them in gaining experience and expertise to carry out the process.