The paper examined the effect of outsourcing services on performance of Hospitality industry in Nigeria. The specific objectives of this study were to: assess the effect of audit service outsourcing on the performance of Hospitality industry in Nigeria and examine the effect of legal service outsourcing on the performance of Hospitality industry in Nigeria. Outsourcing as an evolving business strategy involves a range of activities that create stakeholders’ management, demand for efficiency and core competency separation all of which theoretical propositions can be leveraged for clarity. Three theories were considered and discussed based on their relevance to the study. The paper found out based on empirical evidence that audit and legal out sourcing have significant effect on Hospitality industry in Nigeria. The study concludes that outsourcing services has significant effect on performance of Hospitality industry in Nigeria. The paper recommended that Hospitality industry who subcontract their audit service to third party professionals should continue in order to sustain financial control of their firms through speedy reports, reliable report generation and efficient scrutiny of financial records.

Keywords: Outsourcing Services, Audit Service, Legal Services and performance of Hospitality Industry.