Actually, big corporations outsource to transfer risk and not because it's cheap. To compliance/legal departments, paying exorbitant fees to qualified vendors is saving money in their risk analyses.
Exactly. If you don't have expertise in house, then it can be cheaper to hire that task out to an outside company rather than hire someone to manage it in house. This sure sucks for the TV show, but at least they have someone else to hold accountable. If this had happened and they handled their own IT, there wouldn't be anyone but themselves to hold accountable. And you can bet that means a lawsuit with damages.
How so? They were negligent. Beyond that, you're also assuming the client didn't have lawyers--there's no way this contract gets signed off on without the vendor absorbing the risk.
If all the legal work was done properly, the vendor would end up in court with their insurer.
Yeah, well you see how well it worked out in this instance. They transferred risk to a party incapable of mitigating that risk.
I think maybe the TV producer's lawyers think that suing the internet host into oblivion will get their TV show back?
If this was indeed a risk transfer outsourcing agreement, everyone who was involved in vetting and approving the hosting contract should be fired and possibly sued for negligence.
