Outsourcing means shifting development work to the world where labour is cheaper. Outsourcing is not a new concept. Everybody do outsourcing. Whether its house cleaning or software development. But software outsourcing has appeale a lot.
In software outsourcing, software development projects are developed by offshroe team. General communication takes place using messengers and email. But with the increasing reach, sophistication of communication and new product developments like Skype has put offshore development teams within earshot. That is why currently offshore outsourcing is impossible to ignoer. And many executives are using IT outsourcing as a strategy to boost their company value and share prices. Many surveys have provided firm evidence that if outsourcing deal is successful, it can have a positive impact on company's share value.
In outsourcing, it is very important that, outsourcing service provider adopt to client's requirements and business model. Generally waterfall development system is more useful in offshore development although, its all about mututal understanding between client and vendor. Because success does not reply totally on picking up the waterfall model.