Cheap and reliable labor is a significant problem in the modern day business practice. When a company does not have an effective way of attracting new employees, it might engage itself in outsourcing practices. In line with the effectiveness of these practices, companies are turning to outsourcing as an approach to improving operational efficiency. Such customer-centered initiatives are fit for the utility segment since they help in reducing operational costs, improving business efficiencies to stay in touch with the increased customer satisfaction, regulatory pressure, as well as competition. One of the greatest failures of outsourcing in Saudi Arabia was at the Saudi Aramco’s Security. In 2010, the company’s value estimated to be 7,000 billion USD. From the intellectual property point of view, Saudi Aramco has over 100 subsidiaries across the globe (Elsayed, 2014). The company has also employed over 500 scientists and engineers. Despite the enterprise’s success, there is a broad range of issue that a proof failure of its outsourcing strategy. One of the major mistakes made by Aramco is that it redirected all its services to the SAP system. Through this approach, an employee can get employment accreditation through the SAP system. At the same time, the same employee can have access to the same system through using a gate pass. While one of the approaches has security functionalities, the other one is an EIS function. Besides, doctors use the SAP systems to provide medication. Another mistake that resulted in the company’s failure is that the company trusted its contractors on not only the administration but also security of its system. Instead of entrusting these duties to its IT experts, the company ignored their ability. The downside of using the contractors was that they utilized temporary workforce for managing the company’s network (Elsayed, 2014). The contractors that Aramco hired were from the newly established local firms. The company gave the contractors unique duties. For instance, while one contractor was in charge of installing, the other was in charge of the applications. In case of an issue, employees were required “904” to report a problem. There are many threats that arise from these approaches. To begin with, the contracted companied hired their workforce from another Asian workforce. When employees have a better deal, they could abandon their functions for new employment opportunities (Elsayed, 2014). Since these employees know more about the Saudi Aramco system, they can easily share the company’s secrets to the competitors. Another issue that arose was the increased corruption in the outsourcing contracts. Since its inception in the mid-nineties, corruption in outsourcing is a product of corporate management. Outsourcing of contractors faces serious verification challenged. The two problems combined gave the company unique challenges. Worse enough, the company’s management has been targeting the loyal workers to assume the responsibility of the poor security practices (Elsayed, 2014). Despite the challenges the mistakes might present, the presented challenges are irreversible if the company’s president can take use more informed strategies when outsourcing