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Offshore Software Development: What is it and why do it?

The term offshore development in the IT world is predominantly used to describe the business of outsourcing software development and engineering services overseas. The most widespread reasons for for offshore development are cost-efficiency, globalization and lack of domestic resources. Costs reduction is the most common cause for offshore development. The tasks like coding and software testing services and QA can be carried out in developing countries for one tenth of domestic cost. India has gained revenues from such type of outsourcing from $110 million in 1990 to predicted $6.3 billion in 2000-2001. Inspired by such tremendous success, more and more underdeveloped countries endeavor to become serious rivals for so-called India monopoly. Software vendors striving to international markets and seeking for localization of their products to specific platforms, languages and cultural standards consider it most efficient to opt for offshore development resources geographically ne