IT managers commiserate over challenges of convincing senior executives that, contrary to popular belief, outsourcing isn't always a money-saving option. The article presents an IT sourcing research that covers motivations and consequences of outsourcing and has neglected another important option, insourcing. Insourcing is the practice of evaluating the outsourcing option, but confirming the continued use of internal IT resources to achieve the same objectives of outsourcing. This research contributes to the IT sourcing research base by providing evidence that companies need not necessarily turn to outsourcing to improve IT performance. While outsourcing may be a preferred option for some organizations for various reasons, such as returning to core competencies or focusing IT staff on more business-oriented IT activities, these cases show that if cost reduction is the major objective, IT managers can oftentimes replicate a vendor's cost reduction tactics. Insourcing success, however, is predicated on a number of key issues, including aligning perceptions of and agendas for IT.