The present paper aims to explore IS outsourcing practices being followed by Indian manufacturing sector and the attributes affecting choice of IS at the time of purchase. Survey method has been used to attain the objectives of research by including 70 large and medium scale organisations, from state of Punjab in India, in the sample. It was found that Indian manufacturing firms were using IS for operational benefits rather for strategic benefits. Extent of outsourcing IS functions was limited. Organisations were found lacking in planning for IS outsourcing activities. Top management was playing an active role in the purchase of IS-based applications with the major inputs coming from IT department in the organisation. The present study provides useful insights regarding the state of IS outsourcing in the Indian manufacturing sector. Findings of the study indicate that IS outsourcing practices are in nascent stage as IS usage history of Indian manufacturing sector is quite short.