ENGLISH ABSTRACT: This study report concerns service delivery issues at municipal level which have emerged as areas of critical concern as far as they affect consumers of municipal services, interest groups and government as a whole. Background to investigation. The need to investigate the service delivery challenges at municipal level arose out of multiple newspaper reports reflecting on lack of satisfaction from end-users and authorities regarding quality of delivery. Organizations such as South African Local Government Association (SALGA) and South African National Civic Organization have both commissioned assessment of municipal service delivery performances, and the reports drafted thereof were both critical and unimpressive. Based on these reports, the author recognized the need to investigate the reasons for poor service delivery and to test the idea of adopting outsourcing as a complementary mechanism to the delivery of services that are currently being employed. Procedure used. The information gathering for this investigation was done by means of structured interviews with municipal managers and senior officials in the administration. Provinces which were covered in the study include Limpopo, Gauteng, and North West. Although it was desirable to include more provinces in the study, it was however not feasible owing to limited resources available. Related literature was examined to further enhance insight in the subject and also to search for added potential solutions to the service delivery problem. Results of investigation. The findings reveal that primary barriers to quality service delivery are lack of sufficient municipal capacity; shortage of skilled workers; budgetary constraints; lack of effective management systems to ensure that, when a service is sourced from outside, competent service providers are appointed and their performance satisfy and exceed expectation and requirements. The root causes to these service delivery challenges are, among other things, a consequence of economic development which stimulates demand for skilled workers in the private sectors, and limited resources in the coffers of government. To compound the challenges, municipalities are unable to attract, develop and retain the quantities and qualities of skilled workers they need, owing to the uncompetitive pay packages they offer. Literature has revealed that legislature, in the form of Municipal Systems Act, make provision for municipalities to explore service delivery mechanisms in order to supplement internal means (Municipal Systems Act, 32 of 2000). Conclusion. From the results and findings the following conclusions can be drawn: Owing to the present demand for service delivery and the inability of municipalities to build sufficient internal capacity, alternative mechanisms such as outsourcing, must be explored and employed. In addition, there is, however, a great need for management systems and structures to be established or upgraded to ensure that mileage from external service providers is maximized. Recommendation. Following the results of the investigation and the conclusion made, the following actions can be recommended: • Assess service delivery capabilities and identify gaps. • Establish service needs and requirements that can be sourced externally. • Set up robust management systems and support structures to ensure that outsourcing initiatives are guaranteed to be successful.