In today’s business environment, companies are driven to conduct a few functions inhouse and to obtain the rest from other sources through aggressive outsourcing. Recently, many firms have outsourced their customer relationship management (CRM) tools or systems (e.g. CRM programs, loyalty programs, and sales management) to consulting firms and other system developers. While CRM outsourcing may seem attractive at the management level considering investment cost and expertise, serious hazards are often encountered when they face serious losses in organizational learning for their markets and customers. This study contributes to marketing research by examining the importance of providing information concerning the impact of management’s strategic decisions, such as the decision to outsource marketing functions. Additionally, the current study complements and extends extant outsourcing and organizational learning research aimed at identifying the underlying determinant of outsourcing, examining the relationship between outsourcing and the marketing learning process, and exploring the outcomes of an effective marketing learning process. Keywords: organizational learning; marketing capability; outsourcing; customer relationship management Despite the increasing interest in organizational learning (hereafter OL), there is still some vagueness surrounding several fundamental issues, including the proper conceptualization and measurement of OL, outcomes of effective learning, facilitators of OL and learning loss, or barriers to learning (Baker & Sinkula, 1999; Day, 2002; Huber, 1991; Moorman, 1995; Moorman & Miner, 1997; Rindfleisch & Moorman, 2001; Sinkula, 2002). Research on facilitators of learning has drawn the most significant amount of attention from researchers; in comparison, relatively little attention has been paid to obstacles to OL. In particular, no research to date has empirically tested a learning framework that highlights learning barrier factors that diminish the organizational learning process (hereafter OLP). In recent years, an increasing amount of attention has been paid to outsourcing of marketing functions in organizations. A major influence impacting outsourcing decision making is consideration of scale and costs (Finlay & King, 1999). McFarlan and Nolan (1995) argued that the major drivers for outsourcing were primarily cost-effective access