Context: Cloud Outsourcing is a new form of outsourcing which is not more under implementation and yet to be implemented. It is a form of outsourcing in which software organizations outsource the work to e-freelancers available throughout the world using cloud services via the Internet. Software organizations handovers the respective task to the cloud and from the cloud e-freelancers undertake the development of task and then return back the finished task to the cloud. Organizations recollect the finished task from the cloud and verify it and then pay to the e-freelancer. Objectives: The aim of this study is to identify the sequence of activities involved during the entire process of cloud outsourcing and to find out the risks which are likely to be occurred during the implementation of this process. To prioritize the elicitated risks according to their probability of occurrence, impact and cost required to mitigate the corresponding risk. Methods: Data is collected by literature review and then the data is synthesized. On the other side interviews with practitioners are conducted to know the activities involved and to find out the risks that are likely to be occurred during the implementation of cloud outsourcing. After this, a survey is conducted in order to prioritize the risks and a standard risk analysis is conducted to know the risks which are likely to be occurred. Literature review is done using four databases including the literature from the year 1990 to till date. Results: Totally we have identified 21 risks that are likely to be occurred and 8 activities so far. By performing risk analysis we have presented the risks, which should be considered first and relevant counter measures are suggested to overcome them. / mr.kommineni@me.com, mr.kommineni1@gmail.com phone no. +919963420123