Outsourcing distribution channel websites reduces IT costs and improves the overall quality of the websites. Research shows that an increasing number of companies are outsourcing IT functions. An abundance of research and data analyzing the business and IT affects of outsourcing exists, although many contradict the other. The proponents of outsourcing claim that outsourcing can reduce IT costs and improve the quality of service. The opponents of outsourcing claim that cost of the contract and the amount of money spent managing it ends up being greater than the cost to provide the same service in-house. Both viewpoints offer data to support their conclusions. The goal of this project is to analyze the business and IT effects of the outsourcing of distribution channel websites. This project compares the traditional reasons to outsource against data gathered from companies, through online surveys, that outsource distribution channel websites to determine if the same reasons apply to this specific business function.