Outsourcing has emerged as a key method of managing Information Systems especially since the report about Eastman Kodak and IBM’s outsourcing partnership in 1989 (Loh and Venkatraman 1992b). However, firms have used outside vendors in many different ways (Gantz 1990) so much so that some IS managers believe that any type of involvement of third party vendors can be considered to be outsourcing. Requirements for outsourcing are not uniform and managers have different evaluations and different approaches to the process (Venkatesan 1992; Welch and Nay& 1992; Walker 1988). Motivations for outsourcing are diverse and vary widely across fms.