Information Technology (IT) outsourcing has been identified as one of potential business services in the Malaysia Economic Transformation Plan. In relation to it, this research aims to investigate the requirements and key success factors of deploying IT outsourcing services among the Malaysian SMEs for e-Business needs. This research will also explore the potential and implication of implementing the IT outsourcing in Malaysia particularly among the SMEs. This paper discusses the literature review on IT outsourcing concept, practices and available models to identify the key success factors and research gaps in this area. The review also includes the e-Business development in Malaysia. This research uses quantitative approach for data collection and hypothesis testing. Outcomes from this research will be a proposed eBusiness outsourcing model targeted for SMEs. However, this paper will only discuss findings from the literature review.