A method and system for analyzing outsourcing of services such as engineering, and ranking suppliers for all activities to ensure quality, controllership and optimum costs, is provided. Outsourcing involves delegating a plurality of activities to a plurality of suppliers. The activities and the suppliers are scored to generate scorecards. Thereafter, an index is calculated, based on the scorecards. Subsequently, the index, along with scorecards, is utilized to rank and select suppliers for all outsourced activities.