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The thesis report investigates the important steps related to the decision making of IT

outsourcing. Mostly organizations do not achieve their expected goals from IT outsourcing

due to the complexity of decision making process. The main purpose of this thesis, thus, is to

describe the necessary steps of IT outsourcing decision making, reveal both major reasons for

taking such a decision and main risks involved with it. As secondary data source, books and

some previous research papers on the issue have been used in order to give better

understanding of the thesis topic. To collect relevant empirical data, a questionnaire was sent

to a range of Swedish and Pakistani companies. The thesis report shows that, a successful and

effective IT outsource decision requires a clear vision of the issue and of the effects that such

a decision may bear with it.