The main objective of this research was to explore how critical success factors affected the outsourcing arrangements between buyers and suppliers in small government organizations, which collectively outsource their IS/IT activities to a single outsourcing vendor. A major finding of this study was that organizations could have a successful co-sourcing arrangement by determining and putting into practice certain critical success factors. In this regard, it can contribute to the existing body of knowledge in co-sourcing activities that have been growing rapidly in government departments as well as in the private sector.