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This research covers and under take the case of identifying the effect of outsourcing on organizational performance ethiotelecom. with the objective of, "intended to examine, the effect of outsource strategic factors on the performance of the organization. The research used quantitative approach and also descriptive statistics were used. The variable used in this research were cost reduction, Core competency, service quality, employee competency and innovativeness (independent variables) organizational performance (dependent variable). The sampling technique used was purposive and random sampling. Self- administered close-ended five point Likert scale questionnaire was used to collect data from frequent users of different department and fleet operation employee. Statistical package for social science (SPSS) version 22 was used for the data analysis.