The article features the study conducted by Deloitte Research on the significance of managing outsourcing risks of companies in the U.S. Due to the increase of information technology and business process outsourcing market and it shows no signs of slowing down, there is a tendency that offshore entities may carry risks. Despite the growing trend in outsourcing, research revealed that some companies expressed disappointment with their outsourcers' overall ability to provide continuous process and technology improvements. Eventhough the inherent risk of any project is failure, it shows that outsourcing and offshoring carries many more complex risks.