A Thesis/Dissertation Submitted in Partial/Fulfilment of the Requirements for Award of Degree of Master of Science in Procurement and Supply Chain Management (PSCM) of Mzumbe University.The problem of this research is to evaluate Information Technology outsourcing in increasing the efficiency of services provided by commercial banks in Tanzania: A case of NBC Bank Limited. The study aimed to investigate the factors which caused poor bank services including long queues at the counters, ATM disputes, and lead time to process loan or delay in securing loans. Findings showed that, the service rates were lower than the arrival rate; this means that customers had to wait for the service. The study also found that, customers failed to secure loans due to manual procedures of loan processing. In order to provide efficient services, the automated modern technology such as visa and master cards was introduced to enable global transaction; this proved bank’s mission of aspiring to give efficient quality service to esteemed customers. From the deduced findings and analysis, the study concludes that, NBC Bank Limited is more/less effective in the provision of service and number of recommendation has been given. For example, the bank should have a clearly defined outsourcing policy which is going to save the bank’s time and efforts in its business. Top management must pay attention to the short comings of modern technology which are being brought by the IT service providers. Top management should consider the growing demand of new ATM locations. NBC management should train its staff so as to cope with the changing technology.