Palembang is one of the industrial cities in Indonesia. As an industrial city, Palembang experiences a rapid economic development which enables it to attract investors or companies to invest in Palembang. Within the business world, businesses can be divided into two, namely core businesses and noncore businesses. Noncore businesses can be transferred to service provider companies or also known as outsourcing companies. The high demand on outsourcing manpower is not balanced with the number of outsourcing companies in Palembang. This causes employing companies to enter into a working agreement with outsourcing companies outside of Palembang. The working agreement between the employing company and outsourcing company outside of Palembang causes the government to encounter difficulties in conducting supervision as well as difficulties in settling work relationship conflicts between the employer and employee. Considering the said matter, this research will discuss regarding the legal guarantee protection towards outsourcing manpower and outsourcing employers as well as discussing regarding the ideal outsourcing regulation by considering special conditions in Palembang. This research produces analysis of factors which underlies the occurrence of problems within the outsourcing work system in Palembang, by using the normative research method with the literature review procedure.