Businesses today have been able to take advantage of technology in order to use models such as offshoring in order to reduce their costs without a corresponding decline in quality. However, concerns such as data confidentiality and security issues have emphasised the need for businesses to take considerable care when dealing with crossborder transactions, especially since some knowledge of the needs of different jurisdictions is necessary. This article examines the outsourcing model in the context of the information technology industry and looks at the most important clauses and legal issues in such contracts in the light of Indian, English and German law.