Innovation is increasingly expected in today’s ongoing outsourcing relationships. While prior studies made considerable strides to examine innovation through outsourcing, the research landscape remains highly fragmented. In this review, we bring together and analyse prior research examining this emerging phenomenon in the contexts of IT outsourcing (ITO) and business process outsourcing (BPO). We focus on articles published between 1997 and 2018 in the top outlets across information systems (IS), management, and related disciplines. Our contribution is threefold: First, we present an overview of the key literature on this topic. Second, we identify and document three different scopes of achievable innovation through outsourcing, associated firm-specific intentions and capabilities, and relationship governance structures conducive to such value creating activities. Third, we put forward propositions for future research on innovation through outsourcing.