There is no shortage of contentious contractual issues when inking an IT outsourcing deal, but one in particular has both providers and customers taking a hard line today: liability for data breaches.

Mobile phone contracts, IP connectivity services, PABX maintenance contracts, corporate IP telephony networks. Telecommunications services are the lifeblood of most modern businesses, and the terms of supply are very often provided on standard form conditions that are favourable to the telco.

Australian satellite company, NewSat (ASX: NWT), has signed a 10-year contract with a Middle Eastern telco for Jabiru satellite transmission capacity worth more than $67 million.

Perth-based IT services company, Empired (ASX: EPD), has extended its three-year $14 million infrastructure and project services contract with roading contractor, Main Roads Western Australia, for a further two years.

Tony Joyner has seen it all when it comes to negotiating outsourcing contracts. Joyner is a partner at law firm Freehills, where, as a senior member of its national projects team, he advises some of Australia’s biggest companies. His mantra: Negotiate fairly, be vigilant and keep everybody happy. If only it was that easy.

This is the type of analyst report headline that cloud computing vendors don't want to read: "Empty Promises and Tough Luck: Yankee Group Exposes the Cloud's Fine Print."

Everyone knows a good outsourcing relationship needs to be actively managed. So does a good IT outsourcing contract.

If there's one skill that usually gets short shrift in giving up-and-coming leaders valuable on-the job-experience, it's negotiating contracts with external partners. In some large corporations there are so many parties involved in forging vendor relationships--from internal purchasing organizations and general counsel to outside consultants and advisors--that it's difficult for budding IT leaders to get any experience in edgewise. In smaller organizations, top IT brass may cleave so closely to the contracting and management process for fear of losing money or putting the company at risk that they lock their next generation out of the process.

Good legal counsel can be worth every penny when putting together an outsourcing deal. But those legal fees can add up quickly if you're not careful. Worse yet, some common mistakes customers make when working with an outsourcing attorney can prove costly not only during contracting and negotiations but over the life of the deal.