Why does the outsourcing of IT frequently fail to produce the expected cost savings and other benefits? Lacity, Willcocks, and Feeny (1996) pose this question, and they suggest the following answer: Because managers do not carefully select which IT activities to outsource. Thus, we start this chapter by looking at the distinctive IT nature. We continue by discussing sourcing alternatives and global outsourcing. The chapter ends with suggestions regarding strategic IT planning and project management.