The interest in IS outsourcing is largely a consequence of a shift in business strategy and thinking. The commonly held view in the business world is that the best way to maintian competitive advantage is to concentrate on what an organization does better than anyone else while outsourcing the rest (Salvetti& Shell,1996). For example in many large enterprises the IS function although essential to business success is seen as a non-core activity that can be outsourced. It is a commonly held view that IT vendors possess economies of scale and technical expertise to provide IS services more efficiently than internal IS departments. Another major driver behind IS outsourcing in particular is that the future direction, growth and value delivered by IS systems is not clear (Lacity & Willcocks, 2001). Therefore many companies view IS as an essential overhead that needs to be minimised.In today’s complex business environment, the use of external services/products can be fundamental in achieving high levels of operational performance and commercial flexibility. It can also provide access to specific skills and experience that is not available in-house.Service delivery models are now more mature and this coupled with maturing global communication infrastructures such as VPN’s has allowed outsourcing to become location independent. This has also reduced the need for company specific data centres.