Managing Open Source Usage in Off-Shore, Outsourced Development: Best Practices - page 5
The Opportunities and Challenges of Open Source Software
The dramatic growth of both open source software usage as well as off-shore and outsourced software development have given rise to new opportunities and challenges for companies building large applications. Taking advantage of these opportunities for increased productivity and quality will require effective understanding and management of the risks involved.
While some of the risk can be managed by pushing liability onto your service provider by forcing them to provide indemnification against damages, it is still critical that you have operational controls in place to prevent problems from occurring in the first place.
In the end, realize that pushing liability onto your vendor by having them indemnify you isn't necessarily the best solution--you still need to have operational controls in place. All that indemnification gives you is the right to sue your vendor to recover damages in case you incur them; good operational controls can ensure you don't incur damages to begin with.
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