Outsourcing originated in the manufacturing sector but has spread and is growing widely in the service sector. $80\%$ of Fortune $500$ organizations outsource into a $$386$ billion annual market. Most outsourcing has been done by larger firms yet small and medium$-$sized organizations can take advantage of outsourcing to enhance their competitive advantage. What are the HR challenges that come with the strategy to outsource? If you were the HR director in a company that decided to outsource $40\%$ of its domestic workforce, how would you handle the shock and ramifications that would surely follow?