Introduction The outsourcing of Information Technologies (IT) implies the use of external service providers by firms to deliver the IT-enabled business process and the application of infrastructure and service solutions for business outcomes. Clients who use IT outsourcing can develop the capacity to improve their effectiveness using the expertise of parties that specialize in technology services. Many companies resort to outsourcing to reduce costs, take advantage of external expertise, assets, and intellectual property, as well as accelerate time to market (IT outsourcing 2019). While some outsourcing deals between companies work, others fail due to different reasons. In this paper, the case of the outsourcing failure of J.P. Morgan and IBM will be discussed. The deal between two companies involved a contract under which IBM would provide IT outsourcing services to J.P. Morgan on a pay-for-service basis. This meant that IBM would be paid for services only when needed. However, two years after the deal’s signing, the bank decided to terminate the agreement as a result of its merger with Bank One. The merger led to the shift in needs and capabilities of J.P. Morgan in terms of its IT processes, which led to the moving of the IT talent back in-house. The exploration of the deal’s failure will involve the discussion of the client and supplier perspectives to understand why the contract was terminated as well as what implications were in place as a result of this. Executive Summary When companies that operate in the sphere of finance engage in IT outsourcing, they expect to expand their capabilities and deliver unique and custom products to customers. Many organizations invest in outsourcing to cut costs necessary to hire IT talent, provide appropriate training, and ensure the available resources necessary for efficient operation. Due to the need to follow the needs of clients to get the best results, delegating IT tasks to other companies is a way of getting the best results. The example of an outsourcing deal that IBM made with J.P. Morgan shows that banks require significant support from organizations with IT expertise to deliver the best possible results. The uniqueness of the deal was associated with the fact that IBM was paid on a ‘pay-as-you-go basis, which meant that there was no regular compensation. The amount of outsourcing work that IBM had done was proportionate to the amount it was paid. Overall, it was expected to earn around $5 billion as a result of the deal with J.P. Morgan. Two years after the deal’s implementation, the client decided to terminate the contract with an outsourcing firm. The termination of the deal was linked to the merger with Bank One, and it thus made sense for J.P. Morgan to bring the IT talent back to the company and eliminate its outsourcing efforts. The case is evidence of the ever-changing needs of companies operating in the financial service industry. Moreover, the example of the deal’s failure shows that mergers and acquisitions can also have a significant impact on whether an organization requires outsourcing. For IBM, the termination of the deal meant a loss of a large client who could have brought a consi