Information systems/ technology outsourcing is considered as anrnapproach for information systems/technology management by chiefrninformation officers and organization s. Thus it is given due attentionrnby various organization s and management because of the advantagesrnit brings to them. Despite the advantages it brings, IS /IT outsourcingrnfaces problems/challenges and risks at any point in the process thatrnmay even lead to failure before its maturity. However, all theses issuesrnare not studied in the case of Ethiopia. This study thus alms to empirically assess how IS/ IT outsourcing isrnmanaged III Ethiopia, specifically at the EthiopianrnTelecommunications Corporation. A case study approach consideringrna currently outsourced information systems development project atrnthe corporation is followed so that a better and detailed under standingrnof the subject can be developed. Furthermore this research titledrnidentify the problems/challenges that the corporation fled duringrnoutsourcing and the possible causes of the problems .rnThe research employed a qualitative research methodology, and hencerninterview and document analysis were major data collect.ionrnmethodologies used. The data collected is analyses as pCI' researchrnquestions and objectives of the study.rnFinally, from the data analysis it is c learly indicated that thernoutsourcing or organization has failed to mee t its schedule, cost,rnrequirements, and cLlstomer servee objectives. The major causes forrnthese problems were lack of detailed requirements from i.he beginning,rnlack of detail in the SLAs, bck of previous experience' in sofLw3rernoutsourcing management.