Software Outsourcing has become a buzzword in today’s global market. There are several reasons for why one should consider outsourcing software development activities. Outsourcing software development tasks can help in saving software application development and lower maintenance costs to a substantial level. It also adds to lower the software development life cycle by leveraging the expertise available with the third party service provider. This facilitates the organization in focusing in to core business area rather than wasting time in non-core fields.

All these definitely add value to the organization in longer terms as focus from the core business area do not get lost. However, it is totally agreeable that extending the outsourcing contract to an external agency does involve significant risk. With outsourced project the main issue is ‘Minimum Control’ over the projects. Organizations that outsource software development projects definitely loose control of the project over a period of time and hence doe not remain updated regarding the project status.

It has become more than important for the outsourcing company to draw lines at the time of signing a contract. Several issues need to be targeted right away for perfect answers and understanding. Some of these are:

The basis for an outsourcing strategy can be as follows: