The rapidly increasing use of outsourcing for IT services, both in the public and private sectors, has attracted much interest from researchers and practitioners alike. While early studies of IT outsourcing were largely qualitative in nature, more recent studies have attempted to analyze the outcomes achieved in quantitative terms. Domberger et al. (2000) are consistent with the latter, but goes further by modeling the price, performance, and contract characteristics that are relevant to IT outsourcing. A two-equation recursive regression model was used to analyze 48 contracts for IT support and maintenance.