This paper provides guidelines for identifying, evaluating, and selecting the appropriate type of outsourcing personnel and estimating the costs associated with use of these resources. A description of available personnel resources (consulting companies, service companies, contractors, and semiretired) is provided along with their applicability to and usefulness in fulfilling outsourcing engineering requirements. Each of these classes of personnel also commands a different price in the marketplace. A simple means of estimating these costs is provided. The rationale for these costs is developed and presented. The information presented is useful for all petroleum company managers involved with outsourcing engineering services. It will provide management with the guidelines for selecting a service provider that fits their needs. The methods presented for estimating costs will assist planning and budgeting of outsourcing expenses. As oil and gas companies downsize, many personnel have become consultants or contract-service providers to the petroleum companies. This paper will provide these people with guidelines for positioning themselves in the market. In addition, it also provides a method of determining their true costs. The paper does not discuss the correct pay for full-time employees. It will discuss what a petroleum company should expect to pay and what the service provider should expect to receive on the basis of the base salary of a full-time employee for the equivalent job within a petroleum company.