Managers are currently dealing with a variety of sourcing decisions regarding information technology (IT) projects. Reduction in labor costs is the primary driver for outsourcing and offshoring initiatives (e.g. Klaas, McClendon and Gainey, 1999; Lacity, Willcocks, and Feeny, 1996). However, the challenges posed by these solutions can be reduced, or possibly eliminated, through a novel and innovative collaboration approach called ‘inter-sourcing’. This paper defines what is meant by inter-sourcing, and identifies benefits and challenges associated with this new approach. This “work in progress” outlines the preliminary development of this exploratory project and the qualitative methodology that will be used to investigate the topic in depth. If accepted for the MWAIS program, the authors will share updated findings from interviews and anecdotal evidence of successful projects resulting from inter-sourcing alliances.