he purpose of this research is to assess the challenges and prospects of outsourcing the non-rncore activities in commercial bank of Ethiopia. The study areas were CBE branches underrneast Addis district and the outsourcing administrative office. The research is a descriptivernstudy applying both quantitative and qualitative approach in which questioner was collectedrnacross a population through simple random sampling and uses descriptive statistics for therndata analysis.rnThe finding of the study shows that outsourced service assist commercial bank of Ethiopia tornfocus more on core functions and strategic areas, to save management time and expand itsrnbranch assertively. On the other side, difficult to measure service quality, low employeernbelongingness and loss of control were the major challenges of the bank due to outsourcing.rnFinally based on the finding, the researcher recommended that monitoring and evaluationrnsystem need to be put in place for timely corrective action before time elapses andrnrectification becomes so difficult. When it is used in a calculated and well-designed way,rnoutsourcing could bring lots of benefits to the client organization. If applied without properrnassessment of the capacities of service providers, it may involve irreparable damages in thernshort-range and could draw lots of risks that may disturb time-honoured organizationalrnculture. Hence, any form of outsourcing is likely called for maximizing benefits andrnminimizing risksrnKey WordsrnChallenges of Outsourcing, Benefits of outsourcing, Employees attitude