In any organization HR related decisions play an important role in achieving the objectives of the organization. The human resources both inside and outside the organization have to be properly guided towards this direction. The HR outsourcing which has become a recent phenomenon has been playing an important role in fulfilling the goals of the organization. In this paper an attempt is made to present the perceptions of employees on outsourcing as human resource strategy with special emphasis on Visakhapatnam Port Trust, Visakhapatnam.