The study topic was outsourcing and organizational performance in parastatal organizations in Uganda: a case study of Civil Aviation Authority (CAA)”. Outsourcing was the independent variable, organizational performance was the dependent variable and procurement legal framework was the moderating variable. The study was conducted because despite CAA’s outsourcing, its performance had not scaled up. Thus, the general objective was to assess the effect of outsourcing on organizational performance in CAA. The specific objectives were to: assess the effect of outsourcing planning and decision making on organizational performance, find out the effect of outsourcing process on organizational performance, and establish the moderator effect of procurement legal framework on the relationship between outsourcing and organizational performance. A case study design using both qualitative and quantitative approaches was adopted. The target population was 38 and a sample size of 36 respondents was selected using simple random sampling and purposive sampling. Primary data was collected using questionnaires and interviews. Secondary data was gathered by reviewing documents. Frequencies and percentages and Spearman rank order correlation were used to analyze quantitative data. Qualitative data was sorted and classified into themes and categories to support the quantitative data. It was established that outsourcing planning and decision-making accounted for 31.7% change in the performance of the CAA and outsourcing processes accounted for 51.6% change in the performance of the CAA. However, procurement legal framework moderated the relationship between outsourcing and performance by weakening the strength of the relationships. It is recommended that CAA should improve its planning and decision-making, outsourcing process and procurement legal framework to improve its performance.