Ensuring the well-being of outsourced employees is critical to capitalizing on the benefits of outsourcing. Due to changes in the workplace affecting the continuity of organizational identity, outsourced employees may confront conflicts of organizational identity. Outsourced employees may identify with both the employing company and the workplace in which they work. This study recruited 378 outsourced employees in Japan to clarify the existence of two organizational identities and the impact of each of the two identities on their (job satisfaction and workplace loneliness). The results show that although outsourced employees possess two identities, both are relatively weak. Identity with the workplace was more substantial than with the employing company. Moreover, identity with the workplace (r = −0.33, p < .001) showed the most significant correlation with job satisfaction. Contrary to expectations, although identity with the employing company increased job satisfaction (β = 0.13, p < .05), it also causes workplace loneliness (β = 0.15, p < .05). These findings confirmed that identity with the employing company is a double-edged sword, and managers should remain aware of its potential threats to the well-being of outsourced employees.