This study is to analyze cases of Contracting-out between local governments in Korea and Japan. Nowadays, local government is worrying how they can improve the efficiency of service delivery system because of the continuous provision, expending policy, financial difficulty, etc. Contracting-out in between Local Governments has many merits in public service delivery, comparing to other alternative measures. Nevertheless, Korea are very few applications as compared with those of Japan(indifference about contracting-out in between Local Governments, lack of motive in the local governments, and lack of support system of the central government). In conclusion we suggest institution approach methods(revision of the Local Government Act, contracting-out selection standards, public announcing system) and non-institution approach methods(improvement of organizational culture and behavior).