A lot of IT related work is outsourced from the developed countries like US, UK, Australia etc to different developing countries and India ranks first in this. This entire outsourcing of IT work is done primarily for the two reasons i.e. easy availability of the skilled workforce in the developing countries and secondly due to the cost effectiveness. However, outsourcing of work sometimes creates more perils than benefits and thus both the parties i.e. the Service Provider and the Service Recipient should follow certain steps in order to enable smooth functioning of the entire process and reducing chances of friction.