The aims of this research were to investigate the factors that influence the IT offshoring approach among the Iraqian SMEs and whether this approach can be considered for the SMEs e_business implementation. SMEs face many issues such as technological, business, economic and cultural nature, while trying to be in an advantage edge or survive at least. Business offshoring is one of the approaches common especially in IT development to assist the enterprises to automate and streamline the business processes. This research applied the quantitative and qualitative approaches when collecting data from the Iraqiann SMEs. SPSS software was used to analyse the collected data.