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Introduction Outsourcing is the activity of contracting other specialised companies to perform the business processes that organisations can’t or do not wish to undertake themselves. Traditionally, IT outsourcing has involved an external service provider being engaged via a formal contract to deliver part or all IT functions to achieve specified results. The contracts are usually for a fixed price and for a specified period of up to ten years. Services that are outsourced vary greatly, being based upon the requirements of each organisation. These services include IT service/help desk, LAN/WAN management, desktop services, mainframe operations, web hosting and application management and support. To date, outsourcing contracts have not usually included applications development, IT&T security policies, or strategic planning, as many organisations see these aspects as critical to their business. Outsourcing vendors are also commonly involved with addressing support and manpower shortage issues Companies are increasingly outsourcing the management of information technology (IT) for reasons that include concern for cost and quality, lagging IT performance, supplier pressure, access to special technical and application skills, and