This chapter presents an overview of the pertinent aspects of planning for the outsourcing of information systems projects. The first major section of the chapter presents a historical perspective on the evolution of information systems outsourcing practices so the reader can understand subsequent sections of the chapter in context. The next major portion of the chapter deals with the need to examine goals, strategies, core competencies, and critical success factors as well as presenting all the functional areas of information systems that are candidates to be outsourced. Also included are discussions of the need to perform cost/benefits analysis and to consider cultural and other factors. The concluding section deals with all the factors that should be examined in preparing and administering outsourcing contracts.