Information technology outsourcing has been around for a while now, and businesses have long understood the benefits. It has become an important basis for competitive advantage and will remain so in the years to come, forming an integral part of Broedner et al.'s business strategy. 2009. Outsourcing focused on the factors determining the outsourcing decision, e.g. Aubert, Patry and Ri vard, 2004 Yang and Huang, 2000, companies share knowledge successfully, e.g. The aim of the study is to find out the outsourcing practices in the banking sector of Pakistan and to what extent they influence the perception of policy makers towards outsourcing. The literature review shows the relationship between factors such as perceived benefits, perceived risks, barriers and criticality of outsourcing decisions and, HU Rahman et al: Empirical investigation of influencing factors regarding outsourcing offshore outsourcing decision 64 R. Chauhan, “Offshore ERP Implementations: Critical Success Factors in