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The purpose of this paper is to identify ERP system sourcing strategies available to SMEs and to provide insights from a case study of the practices applied and decisions made by an SME in using a hybrid of sourcing resources to implement the successful conversion of their legacy ERP system to a new information technology (IT) environment.

This research is a case study utilizing various data sources including face‐to‐face interviews, informal conversations, and e‐mails with members of the case company. Company software applications and documents were examined and employees were observed in action. The analysis compares characteristics of the client‐vendor relationship of the case company with findings from relevant outsourcing literature.

This case study identified, among others, the following practices that were critical to the case company in their outsourcing endeavors: attending networking events for SMEs, obtaining formal contract for ownership of intellectual property, utilizing local vendor contact point for communication with offshore contact point, and utilizing vendor's skill‐set for specialized resources.

This case study relates practice with theory, providing a reference for both academia and practitioners.

The decision making and practices described in this paper provide insights that may be useful to organizations considering IT software implementations. ERP systems are increasingly more affordable for SMEs and offshore outsourcing is becoming more accessible; therefore, SMEs considering these options may benefit from Kanebridge's experience.