Nowadays, modern technology, virtual communication and teleworking are creating a new trend in living, but also in business. It is the business environment that is a key factor for the success of a company as it is very changeable and dynamic, and what is coveted in any business is to develop successful business strategies and to enhance financial performance, while reducing expenditure. Those companies that cannot keep up with newly formed changes and the course of change do not have the ability to adapt to unexpected changes need an efficient and cost-effective way of doing business, and outsourcing is one of the ways a company can define its goals needed to solve problems and improve business. The aim and purpose of this paper is the conceptual definition of outsourcing and conducting research on how familiar people are with this concept, but also how much it is represented throughout the Republic of Croatia. The meaning of outsourcing, the concepts related to outsourcing, the main areas of outsourcing and the stages and management of outsourcing are explained in detail, with an overview of outsourcing of certain public services, as well as the representation of outsourcing in the Republic of Croatia.