Offshore software development is a kind of outsourcing in which the jobs of software development are transferred to offshore countries.

Outsourcing a term having different connotations but on the other hand having significant potential to improve an organization's bottom lines. It makes the business enterprise more competitive in today's market-place by making it more responsive to changes in technology, improve quality of offerings, import new and desired skill-sets into the organization and generally however, if done with little preparation and without a clear business case, can often be a sure recipe for disaster.

Offshore software development is a kind of outsourcing in which the jobs of software development are transferred to offshore countries. Mainly companies in USA transfer software development job to India or other south Asian countries. In India there are many offshore development companies. In India offshore software development have some advantages and also some disadvantages.

Advantages of offshore software development in India

India is a densely populated country so the labor cost in India is too cheap. Along with the cheap labor Indian software professionals are so skilled and high mental level persons. This is the main reason that the US and Europe companies transfer their jobs in India. By offshoring their jobs the companies will save a lot of money. According to a market research normally US and Europe companies save around 70% of their software development cost through Offshore software development. In US the average salary of software developer is $9000 per year.