Information technology (IT) outsourcing is a business trend aimed at reducing costs and enabling companies to concentrate on their core competencies. This qualitative multiple case design research study explored the effects of hidden costs on the operational management of IT outsourcing. The study involved analyzing IT outsourcing agreements as enacted at the operational management phase of the life cycle with reference to the Service, Science, Management, and Engineering theory. The study included 10 cases from North America, Europe, and China. The study participants were senior-level informed personnel who had experience working with IT outsourcing. Six field based best practices emerged from the research. Seventy percent of cases expressed concern about the outsourcing provider cultural fit based on negativity in relation to trust stemming from business culture specifically the predominant sales ethos of the service provider. This conclusion was significant because it emphasized business cultural differences as key factor in successful provision of IT services. The study findings also revealed that governance structure and partnership mind-set affect IT outsourcing performance. Regardless of a partner mind-set in a dispute, the contract is the ruling authority and actions are dependent on what is stated in the contract. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com.bibliotheek.ehb.be/en-US/products/dissertations/individuals.shtml.]