This study investigates fleet outsourcing in government from a strategic perspective as it is integrated into the overall strategy of the Department of Transport. This study attempts to overcome some of the problems associated with outsourcing by integrating a number of key aspects of outsourcing including a value chain perspective, core competency thinking and supply base influences into the decision-making process. The background of the research highlights the status quo and examples of similar fleet management projects in Government. These include major projects in National Government, Telkom and City of Johannesburg. The research is motivated by the need for government to find new ways, with limited resources, to achieve maximum efficiency in fleet management by managing these resources and related risks. The value of the research is a holistic approach to the analysis of fleet management the public sector has never been undertaken. The study will also help the state to recognise the impact fleet management has on the state's core activities and offer a tool for measuring fleet management performance. The research methodology is qualitative and will be based on a case study approach, which is associated with the exploratory nature of this study. Outsourcing is justifiable if visible costs decrease, service improves and economies of scale are achieved. / Thesis (MBA)-University of KwaZulu-Natal, Westville, 2006.