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Information systems development (ISD) work entails a series of problem solving activities and, therefore, knowing how to enhance problem solving competence is critical for project success. Since ISD is a knowledge intensive task, problem solving competence is largely determined whether the members can effectively utilize knowledge resources located within the team. Based on the transactive memory concept and following traditional wisdom, we hypothesized that knowing the location of knowledge allow better problem-solving competency. We also attempted to extend past studies by showing that problem-solving competency is also a function of knowledge complement and deployment. The study results, based on data collected from 215 team project managers, confirmed our hypotheses that having complement knowledge, allocating knowledge in right position, and knowing the allocation of resources are critical for problem-solving competency. In addition, the critical role of problem solving competence in project performance is reaffirmed.