<p>This article considers a variant of the capacitated facility location problem, where each customer has a non-negative demand and each facility has a non-negative capacity limit and a service distance beyond which it cannot serve customers. A fixed number of facilities are opened from potential locations. The open facilities can only provide service to the customers incurring service costs. Due to the capacity limits and service distance of facilities, all the customers may not be serviced by the open facilities, and these customers can be outsourced incurring outsourcing costs. Each customer has its own non-negative outsourcing cost. The goal is to minimize the sum of service and outsourcing costs. This problem is termed the Capacitated Facility Location Problem with Service Distance and Outsourcing (CFLPSDO). A 0-1 integer linear programming formulation for CFLPSDO is presented in this article. For experimentation, 45 instances are generated from real-world maximal covering location problem instances. These are solved using the exact solver CPLEX to create benchmark solutions. Then, a customized Artificial Bee Colony (ABC) algorithm-based metaheuristic, with two operators for enhanced search space exploration and exploitation, is employed and found to produce optimal solutions efficiently.</p>