The company must, in order to achieve growth and survival, focus on those activities and processes, in which has a certain competitive advantage and outsource those activities and processes in which the advantages have other entities in the market. Outsourcing is a strategic decision that entails the external contracting of determined non-strategic activities or business processes necessary for the manufacture of goods or the provision of services by means of agreements or contracts with higher capability firms to undertake those activities or business processes, with the aim of improving competitive advantage. Basic scientific objective of this study is to determine the legality of link between outsourcing and business performance of enterprises, as well as to design model if the relationship between these variables in order to detect the size of the connection, its direction and intensity. The survey of the relevant literature led to the conclusion that such a direct relationship does not really exist in a general form, and for this reason it is necessary to introduce mediating variables in order to accurately determine the relationship of outsourcing and business performance. In the present study two variables were introduced to mediate outsourcing and business performance realtionship: non-market reasons for outsourcing, with components: legislation, interest pressures and political influence, and the competitiveness or competitive capabilities of enterprises. Benefits of outsourcing are regarded as an independent variable that affects the mediating variable competitive capabilities of enterprises, but it is dependent on the independent variable convenience of acitivity for outsourcing (outsourceability of acitivity) and variable non-market reasons for outsourcing. Business performance were observed through perceived financial performance, perceived non-financial performance and actual financial performance obtained on the basis of the calculation from the financial statements of the sampled companies. Results of empirical studies have shown that in the context of non-market reasons for outsourcing legislation has had a positive impact and interest-pressure negative impact on the benefits of outsourcing, which positively affect the competitive capabilities of the company leading to positive changes in perceived financial performance, while a connection exists but with no significans with perceived non-financial performance and actual financial performance. Finnaly, disertation offered a custom initial model of the link between outsourcing and business performance for companies in private ownership when it comes to market in transition, and proposed a draft of models for future studies for state owned and foreign-owned companies.