The business entities and firms are nowadays taking advantage of technology for models like offshoring so as to reduce their costs without a without a corresponding decline in quality. However, with the growth and development of technology the problem related to same is also growing by leaps and bounds. Most developed countries in the world, especially the USA are engaged in outsourcing majority of its industrial and trading contracts, offshore to developing countries like India to reap the benefits of cost effective and proficient work force. However, concerns like data confidentiality and security issues have emphasised the necessity for businesses to take considerable care when handling with crossborder transactions.