This study attempts to investigate the relationship between dimensions of service quality using SERVQUAL, repurchase intention and word of mouth with an emphasis on mediating effect of customer satisfaction. Reliability, tangibility, assurance, empathy, and responsiveness are the five key dimensions of service quality. Total 300 questionnaires were distributed among the clientele of software houses based in Rawalpindi, Islamabad, and Lahore out of which 290 useful questionnaires were useful. The analysis was performed using correlation, multiple regression analysis and Baron and Kenny Test. The results indicated that dimensions of service quality have a significant positive influence on repurchase intention and word of mouth, and customer satisfaction partially mediates between the dependent and independent variable.