What are the key legal issues to address when outsourcing? How do you manage regulatory risk when outsourced activity is regulated? How should liability in an outsourcing agreement be appropriately allocated between customer and supplier, and what are the market norms for such allocation? These are just some of the essential questions to consider when drafting and negotiating an outsourcing contract. A number of recent legal developments have had an impact on such contractual provisions, and there have also been changes in industry norms. Businesses need to be aware of these developments when negotiating optimal outsourcing arrangements.