Global software outsourcing (GSO), also some times called Offshore Software Outsourcing, is the outsourcing of software development to sub-contractors outside the client organization's home country. The first flickering was seen in the 1970s and 1980s. However, it was during the 1990s that GSO really took off. Worldwide, GSO is expanding rapidly, now involving sub-contractor countries as diverse as Ireland, China, Russia and Argentina.

IS outsourcing has been 'normalized': come to be seen as a normal part of a company's Portfolio / Case studies of management procedures. The metaphor of outsourcing has changed from wild beast to be tamed, to beast of burden to be harnessed. Sub-contractors move from arms-length hazards to potential partners. The nature of the client-developer relationship is the key. Successful management of that relationship by both partners shows the potential for long-term, co-operative benefits.

Clients have therefore been keen to normalize GSO and to move up the value chain, in order to increase the benefits of outsourcing. These benefits include not merely the greater cost savings, but also improved access to local labor and to the local IT market and the latest technology trends.

For most companies, outsourcing is an interesting option, but they are reluctant to explore this option. Many companies are not even aware of outsourcing possibilities. Occasional failures of outsourced software projects have been discouraging people to entertain the various options that the fast changing globally competitive markets have to offer. Whether it is a service or a product to sustain an organization's competitiveness, one has to relentlessly pursue cost reduction goals without compromising the quality of the solutions. Thanks to the Internet and the experience of software professionals, outsourcing software has become an excellent service for the talent starved high tech industries.

Much like any other business, the pioneers reap the best benefits, although the early attempts are full of small failures. Thanks to the pioneers, the model has now been perfected and offers a complete scope for all types of companies to venture into outsourcing software to promising IT companies.

Contrary to popular perceptions, the potential benefits are derived best from small and growing companies. They are flexible and focus on delivery of services and solutions in time without compromising quality. Also when you work with such companies, chances are that you will often deal with the top management of the companies who understand the importance of working with clients and satisfying their needs.

There are a few logical and important guidelines that any organization has to follow to be successful in outsourcing software to offshore businesses. The industry model has established itself as one of the most competitive destinations for software development services.

Unlike in house development or on site development, the offshore development has certain peculiarities associated with its process. Most of the steps that are involved in onsite development are present in offshore development. Critical steps have been included in the process to ensure successful completion of the project.

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