The purpose of this research is to assess the challenges and prospects of outsourcing thernsecurity, messenger and janitorial services in commercial bank of Ethiopia and to comernup with the possible solution to minimize the existing problems. The study covers CBErnbranches under west Addis district and the outsourcing administrative office. Thernresearcher used both qualitative and quantitative data collected through questionnaires,rninterview, and review of CBE service level agreement document.rnThe findings of the study show that the outsourced services enabled the bank to savernmanagers time, give more attention for the core functions of the bank rather than nonrncore areas and expand its branch aggressively. On the contrary defining SLA, selectingrnthe right vendor, loss of direct controlling and measuring service qualities were thernchallenges of the bank as the result of outsourced services. In addition to these,rnemployees of the service provider were not properly trained about their job, lackrnmotivation and belongingness, not properly equipped with materials that help to performrntheir job. Thus, the performance of the service provider was not as per service levelrnagreement. Finally, it is recommended that commercial bank of Ethiopia should deal withrnthe service provider to revise the service level agreement and enforce the servicernprovider to facilitate the necessary training to improve employees’ skill and to providernworking materials for a particular job. The bank also need to follow up the servicernquality as per SLA and check the amount of commission that the service providerrncollect from each employees monthly salary as compare with the bank paid to thernservice provider per individual employee