Vendor project teams can greatly facilitate the successful implementation of client ISD projects. We examined the effects of team performance based reward structure on ISD project performance. A total of 194 responses were solicited, obtained, and analyzed. The results indicated that reward based on team performance can enhance the level of task cohesion which in turn facilitates increased information utilization. Both task cohesion and information utilization improve project performance. Directions for management practice and future research are discussed.