Given that CoPSdevelopment projects are costly, failing to conduct them will ruin the organization. Therefore, the decision to out/insource them, is important. In this paper, the factors influencing this decision are discussed. Employingthe Fuzzy Delphi method, the indices are utilized to develop the SEM model. The results show three dimensions of the “projects characteristics”, “requirements” and “competency”. Hypothesesurge that projects characteristics have a significant effect on the requirements, which in turn have a similar effect on the competency. To compare, the ISM method was used. The results are quite similar to those of the SEM model. No sooner could organizations outsource such projects than they gain the technological, contractual, project control, integration, soft technologies, financial and communications strategies capability. The managers of organizations and companies developing CoPS such as airplanes power plants, express trains and ships can use the results and implications of this model.