A recent study identified that there are various benefits of IS outsourcing, for example, enhanced the overall efficiency of the system, decreased risks linked with IT system, monitored the cost of equipment and provided better investments to the consumers. This literature survey critically reviewed the concept of information system outsourcing and identified the risk factors linked with the outsourcing process. Therefore, in this advanced generation, it is very important for companies to control and manage the security risks linked with the outsourcing system because it directly impacts on the performance