Software development has changed the way people look towards IT. The information technology field is experiencing an all new area of expertise – Software Development, and the same has motivated most business houses to get automated through custom made software for their organization.

Outsourcing software development has been recognized as another great way of getting the same software built at cheaper prices and through experienced and expert manpower. Most software development companies have started outsourcing their software solutions project to small companies overseas and this is usually referred to as offshore software development. The outsourcing of software development is done mainly to save money and utilize the expertise of trained and experienced manpower. Outsourcing software development has enabled large corporate software development houses to save on costs incurred on developing portals, e-commerce applications and custom software which is done by freelancers or small companies who charge much less. By doing this, the margins have increased to a larger extent and companies have started making the most of this offshore development business.

The large software solution companies are working on a pattern where they procure orders from the foreign clients at much higher rates and then outsource the same to their local counterparts and in other cases the companies take orders for developing a custom or a basic software and the same is passed on to the other developer for making at a much lower cost. This process enables the so-called middlemen to earn maximum and they save on the other costs such as costs of hiring of manpower and maintaining a proper office for software development.

With the internet as the technological base, companies have created a virtual office space where through video conferencing, the client is able to speak to the vendor and the same can be done even if the vendor is sitting in some other country. This enables the company to build the software without hiring professionals for which they would have had to pay much higher salaries. Close co-ordination is done through video chat which enables the vendor to understand the complete requirements of the client and develop such software which shall help the client in achieving his goals.

Most talented people come for a price and the same is calculated when outsourcing is done. The business houses hire offshore teams to get their high-end back office or front-office applications made which can be used sitting anywhere in the world. Good talented people from other countries are hired as freelancers for outsourcing and this is the base of the development in most companies. Software development is the key to growth in any business and the same should be done by efficient personnel. Be it a small documentation process which needs to be automated or a high end software development project, outsourcing is the key to get quality software development done. With high-end software development, most processes can be automated and these can result in saving of costs and time spent on manpower and talented and skilled labor.