What must an IS auditor review when evaluating an outsourcing agreement for IT services?

When evaluating an outsourcing agreement for IT services, reviewing the ownership rights of intellectual property is crucial. This aspect ensures that the organization retains control and rights over its intellectual property generated during the partnership with the IT service provider. Intellectual property can include proprietary software, processes, and data developed or modified as part of the outsourced services. Clear definitions regarding ownership prevent disputes and legal issues in the future, safeguarding the organization's assets and reducing risks related to intellectual property theft or misuse.

Ownership rights also cover the use, modification, and distribution of the intellectual property, which is vital for maintaining operational integrity and competitive advantage. Properly structured agreements help define how intellectual property will be used after the termination of the service agreement, ensuring that the organization continues to benefit from its innovations and investments even if the relationship with the service provider ends.

While the other options—such as technical capabilities, market reputation, and overall project timeline—are important factors to consider in an outsourcing agreement, they do not specifically address the critical legal implications and risk management associated with intellectual property that directly impact the organization's long-term interests and compliance requirements.