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Information systems/technology outsourcing is considered as an approach for information systems/technology management by chief information officers and organizations. Thus it is given due attention by various organizations and management because of the advantages it brings to them. Despite the advantages it brings, IS/IT outsourcing faces problems/challenges and risks at any point in the process that may even lead to failure before its maturity. This study aims to empirically assess how IS/IT outsourcing is managed in Ethiopia, following a case study approach. A currently outsourced information systems development project is used for this study so that a better and detailed understanding of the current practices about the subject can be developed. Furthermore this research tried to identify the problems/challenges that the organization has faced during outsourcing and the possible causes of the problems.