Outsourcing has been one of the primary issues in strategic management. Given the fact of recent downturn economy across the world will make companies more focus on the cost, which is the most important factor in outsourcing decision. As a result, many companies in the world are moving for outsourcing. However, due to some hidden costs of outsourcing, these companies are not generating the anticipated benefits of outsourcing. This research monograph explores the conceptual framework of outsourcing with its pros and cons. It also tries to identify and explain the hidden costs of outsourcing as well as its future prospects and possibilities across the globe especially in a developing county like Bangladesh.