There is today an increasing acceptance of the concept of defence outsourcing of non-core logistic functions. Outsourcing frees commanders to focus on their primary task and saves resources. The paper attempts a holistic treatment of the subject from conceptual concerns to related practical issues. A brief scan of defence outsourcing the world over leads us to examine benefits that accrue and the precautions that should be taken. The paper goes on to analyse types of functions that can be safely outsourced and suggests a methodology for the entire process. Finally, the paper suggests a well-calibrated phased approach for India with progressive reviews and improvements.