In today's knowledge-driven economy, information and communication technologies (ICTs) are major enablers in all sectors particularly in government departments. Furthermore, it is infinitely acknowledged that information is power, thus, in keeping up with the ICT evolution, the transformation to e-government has continued to be Malaysia's main agenda for economic resilience, capacity building and social capital integration. However, not all government agencies are able to offer the core e-government services to the public as cost, legacy systems and advance ICT skills are the main barriers. Therefore, agencies have to resort to outsourcing where another set of issues have to be contended with. Consequently, the objective of this paper is to provide preliminary insights on a case study of a federal agency's issues with outsourcing, specifically by assessing the feasibility of outsourcing an agency's core e-services including other aspects of backsourcing or insourcing. Also, the findings from the qualitative inquiries and analyses would provide a new framework on outsourcing issues, particularly for e-government services. The implications of this study is that online public services are crucial to a country's socio-economic development as this offsets other important agenda to catapult the country's growth and wellbeing toward Vision 2020 as well as to sustain these positive developments. Also, the ripple effect of an effective and efficient e-service delivery will certainly affect other national issues such as citizen integration, public well-being, international relations, and political stability.