In business, outsourcing involves the contracting out of a business process to another party (compare business process outsourcing). The term “outsourcing” dates back to at least 1981. Outsourcing sometimes involves transferring employees and assets from one firm to another, but not always. Outsourcing is also the practice of handing over control of public services to for-profit corporations. Outsourcing of manpower has become a common practice with companies nowadays. There is always a requirement of professionally qualified and skilled staff in any organization. With the increasing demands of the industry, there is not enough time to get into the complexities of selecting a candidate. This is where outsourcing of manpower comes in. Organizations both large and small are largely hiring services of MIS to provide them with outsourced manpower. They no longer want to get into the hassles and the long process of recruiting. Outsourcing of manpower is a complex job. There is a two way responsibility. Firstly to provide skilled manpower to their clients and secondly to provide good opportunities to the candidates who apply through them. This means a lot of responsibility and there has to be clarity from both ends to enable the manpower staffing companies to provide the right results to both its counterparts. It may sound easy but it is a difficult task.