Due to a diminishing level of available funds, school leaders are faced with difficult decisions associated with reducing budget expenditures. The only way to prevent losing more programs and services is to reduce spending. An area which is quickly gaining popularity in reducing expenditures is outsourcing. Many schools have turned to outside companies to provide an array of services in a more economical and efficient way than the schools can provide using internal personnel. As these "outsiders" enter our schools, there are implications. Currently, an acute shortage of reliable research exists in this area. This qualitative study is an extension of Heinz Retzlaff's research titled "Outsourcing: A Description of Educational Operations and Performance". The function of this undertaking is to provide a better understanding of the perceptions and opinions regarding outsourcing of those stakeholders who are part of the decision-making process from Passaic and Bergen County public schools. Four focus groups participated in the study. The number of participants in the focus groups was as follows: Group 1-6; Group 2-6; Group 3-5; and Group 4-7. Constituents included superintendents, school board members, business officials and building principals. The question route was designed to investigate whether participants feel outsourcing is available and necessary, their perceptions regarding the impact of outsourcing non-instructional education services on operating efficiency and school funding, the current policies and procedures currently being utilized to evaluate outsourcing effectiveness and the perceived obstacles and critical issues related to outsourcing. Clustering and grouping methods were utilized to analyze the content of the focus group sessions and provided many interesting findings which should prove useful for those districts tither involved with or considering outsourcing. The findings reveal that cost savings, operating efficiencies, and labor relations remain as the determinant factors in opting to privatize the transportation, technology, custodial, and maintenance services examined. This dissertation provides the requisite data to become more aware of the impact that outsourcing will have and the information needed to make better decisions on how to deal with the intricacies of outsourcing. Outsourcing remains an area with a need for much further research, specifically in the areas of cost-benefit analysis, impact on employee morale and productivity, as well as the social issues associated with privatization. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]