TO OUTSOURCE OR INSOURCE? In September $2010$ Vural, the IT manager of $$imsan$,$ was awakened early in the morning by a phone call. The man at the other end was the office security guard, and he was calling to alert Vural that there was an alarm signal coming from the companys central system room. Vural jumped out of bed and checked the alarm messages on his phone. The system room had flooded.Of the $14$ system rooms at $$imsan$,$ this was the largest. It contained the primary servers that ran the companys main business applications, such as SAP. All core business processes were dependent on these servers, including sales and dispatch. Their availability was crucial to $$imsans daily operations.When Vural arrived at the office, he saw that water was dripping from the ceiling luckily not onto the servers but near to them, creating a pool of water under the raised floor. All systems were still operational.Having established this, Vural knew that he had to move the central system servers to a safer place as soon as possible. He had wanted to do this earlier, but management had not agreed, as the move would have been too expensive. Luckily, the company was now in the midst of a strategic IT services outsourcing project, and moving the central system room to a professionally operated location was included within the scope of the project.$$imsan was one of the largest cement producers in Turkey, an equal joint venture between Varsan Holding and GreenCement $($Exhibit $1).$imsans IT services outsourcing project was set in motion in $2009$ after an invitation made by Varsan Holding. Varsan Holding had started a strategic IT outsourcing initiative in May $2009$ at its group level. The main goal of the project was to consolidate the IT teams, central system rooms and basic IT services of the companies under its umbrella, and to outsource them to a professional partner.