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 enterprize more competetive in today's market-place by makimg 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.

Disadvantages offshore software development in India

There also some disadvantages of offshore software development in India. Many outsourcing business fail due to these reasons. The main reason is business understanding. Normally new companies are unable to understand the process of offshore outsourcing and fails before grow. In case of web development outsourcing US companies found the Indian view of color co-ordination somewhat lurid.

Risks in offshore software development in India

1. Offshore software development industry in India is still new, young and largely unproven. However there are also lots of success stories which prove Indian offshoring is best.

2. Stability of the Offshore Countries is another risk. In India and other south Asian countries stability is less these countries are always involved in politic and religious activities. This will directly affect Indian economy. India is also relatively unstable. If we see on past two years back the riots in Chennai caused many lost days of development time and they also forced outsourcing. Some software firms to up and move from Chennai.

Before offshore outsourcing companies must ensure that the offshore software development companies have business continuity and disaster recovery plans. Or if not the offshore company should prepare for the eventuality of non-availability of their outsourcing partners.