All employees of an organization need to contribute for any strategic initiative to be successful. Ideally, these contributions need to be driven by inner forces. Against this background, the concept of “employee engagement” has emerged. Employee Engagement is the emotional connection or engagement of an employee’s feelings toward his or her employment organization, which tends to influence his or her behaviors and level of effort in work related activities. The present study is based on a survey of forty organizations along with relevant secondary data which was collected in order to depict the present day context. The study compares and contrasts the levels of employee engagement between regular employees and outsourced employees working in the sample organizations. The results revealed no significant difference in the level of employee engagement between regular and outsourced employees. Based on the results, suggestions and recommendations are listed.