IT outsourcin g , a mean of acquirin g IT resources externally, has become a popular trend worldwide not only amon g lar g e or g anizations but also amon g small and medium sized enterprises (SMEs). The uptake of IT outsourcin g among SMEs in developin g countries are noticeable, especially in the context of Malaysia. Knowin g the state of preparation by SMEs toward IT Outsourcin g and their experiences of usin g it are vital in order to further analyse the issue and underscore the future trend of ITO in Malaysia. Therefore, this study was undertaken to understand how SMEs in Malaysia prepare themselves to ITO, and how their perceptions and experiences of ITO influence the future inclination to it. The obj ective of the study was to examine the current scenario of IT outsourcin g practices amon g Malaysia SMEs.Based on a survey conducted, descriptive analysis was performed on the data. The findin g s revealed that closely half of the SMEs have adopted ITO due to its various advanta g es. The results imply that there is positive indication amon g the SMEs toward ITO adoption, which adds credit to overall ITO expansion in Malaysia. Recommendations and discussions incorporate the roles of SMEs and the g overnment toward ITO trend in Malaysia particularly amon g SMEs.