Positively engaged employees make organisations succeed by investing more time, taking additional responsibilities, helping others and have higher work satisfaction, performance and stay with the organisations. With policy shift towards outsourcing, there are unexplored impact on work engagement. An analytical correlational study was conducted at the apex quaternary care healthcare institute to find any difference in work engagement among the regular and outsourced employees and association with locus of control, a construct about control over one's significant matters. The study revealed that work engagement was higher among outsourced employees and increased with internalisation, age, experience and lower job insecurity. It is not affected by gender or level of education. Locus of control does not vary with age, experience, gender or level of education. The job insecurity decreases with age, experience and internalisation. It is not affected by education and is higher among female employees.