To address the pressures of the 1990’s business climate, Amoco Canada Petroleum Co. Ltd. went through an aggressive evaluation and restructuring of its business operations. This precipitated a critical review of its information technology (M Strategy with a goal of maintaining effectiveness while reducing overall costs. To meet the challenge of substantially reducing expenses while continuing to maintain effective service levels, the company entered a 5. year agreement to outsource its data center and network operations. This paper discusses the business forces that brought Amoco Canada to consider outsourcing, the processes surrounding the outsourcing decision and the results to date. We demonstrate that by understanding the role of IT in its business plans, the company successfully met its outsourcing objectives.