Outsourcing has become a popular mode of developing information system (IS) in practice during the last two decades. Although efforts have been done about evaluating vendors¡¦ capabilities and product¡¦s quality so as to assure high success rate, empirical studies keep reporting that outsourcing is not as successful as expected. Therefore, research based on different perspectives is needed to provide other plausible answers. Draws on this issue, an emerging concept is adopted, called Service-Dominant Logic (S-D logic), which highlights the importance for clients to possess required capabilities in order to maximize the value co-created. Therefore, the goal of this paper is to comprehend and examine critical capabilities that an outsourcing client should possess, and hybrid research model, consisting both traditional and S-D logic was built to reflect our intention. Survey method was then used to test our hypotheses empirically. Data collected from 400 practitioners showed that client¡¦s capabilities have stronger impact on the outcomes variables than conventional variables, such as product quality and vendor¡¦s capabilities. This study contributes to literature by incorporating a new concept, S-D logic, into IS research and emphasizing the critical role of clients¡¦ capabilities.