This report reviews telecom operators in the Middle East and North Africa that have been increasing their information technology outsourcing with the aim of better IT quality, lower costs, and greater flexibility, among other benefits. The problem is that the majority of MENA telecoms have adopted a transactional approach to outsourcing. To achieve the full benefits, this report suggests that companies instead need to adopt a more strategic perspective, especially with respect to three crucial areas: 1) value oriented sourcing, 2) strategic vendor management, and 3) quality assurance.