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Strategic outsourcing prevails over the open market after globalization. Companies strategically outsource suppliers who have distinctive advantage to enhance their business values. This paper aims to examine the target costing practice in outsourcing partners from organizational and technique perspectives and to find out causes for dissimilarity of brand-lead target cost system differ among outsourcing partners. We discovered that target costing processes are lead by the brand company with target costs, and accomplished by contract manufacturers to exercise a series of target costing techniques. Value engineering, lean production, utilization of cost table, cross-functional teamwork, and close supply chain network influence the performance of the target costing. Further, the problem solving capabilities imbedded in outsourced organizations generate a higher level of target costing achievement.