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The quest for a better performance in the service industry has led to numerous managerial decisions, which include exploring various means and apply them in the operation of their organisations to achieve a better performance. Among the various means include outsourcing which cannot be overemphasized. The study was aimed at examining the effect of outsourcing on performance of Benin Electricity Distribution Company in Nigeria. The study employed survey research design with a sample size of 14 business managers who were selected purposively. The data collected were analysed using descriptive Statistics such as percentages, mean score and frequency distribution. The findings of the study showed that all activities at BEDC are outsourced except for the payroll services, tax processing services and payment processing services that were outsourced in just only two branches of BEDC with others having 85.7% no response rate. In line, with the findings of this study, the study concludes that activities at BEDC should be outsourced. The study therefore recommends organisations responsible for electricity distribution should outsourced all non-core activities and not all core activities so as to prevent the organisation from vulnerability. Keywords: Outsourcing, Outsourcing practices, Organisational Performance, Distribution Company, Electricity.

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