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Evaluation and selection of the software packages is complicated and time consuming decision making process. Selection of inappropriate software package can turn out to be costly and adversely affects business processes and functioning of the organization. In this paper we describe (i) generic methodology for software selection, (ii) software evaluation criteria, and (iii) hybrid knowledge based system (HKBS) approach to assist decision makers in evaluation and selection of the software packages. The proposed HKBS approach employs an integrated rule based and case based reasoning techniques. Rule based reasoning is used to capture user needs of the software package and formulate a problem case. Case based reasoning is used to retrieve and compare candidate software packages with the user needs of the package. This paper also evaluates and compares HKBS approach with the widely used existing software evaluation techniques such as analytic hierarchy process (AHP) and weighted scoring method (WSM).