The significance of aligning IT with corporate strategy is widely recognized, but the lack of appropriate methodologies prevented practitioners from integrating IT projects with competitive strategies effectively. This article addresses the issue of deploying Web services strategically using the concept of a widely accepted management tool, the balanced scorecard. A framework is developed to match potential benefits of Web services with corporate strategy in four business dimensions: innovation and learning, internal business process, customer, and financial. It is argued that the strategic benefits of implementing Web services can only be realized if the Web services initiatives are planned and implemented within the framework of an IT strategy that is designed to support the business strategy of a firm.