Offshore software development is one type of IT outsourcing software development company.
Offshore software development is done by an IT outsourcing located in a different country from the one where the software will be used. Offshore software development work has been the maximum availability of developers at a lower cost than in the home country. Firms outsource software development without going offshore by engaging a domestic company that provides consulting software development services.
Common examples are North American companies using software developers located in India and Ireland. “Nearshore” software development is another form of foreign outsourcing in which the company would be located in nearby countries often on the same continent, for example U.S. company engaging U.S.A continent software developers. Various online freelancing platforms like eLance or oDesk are working as a mediator for both the companies and the freelancers in getting projects from offshore countries. Selecting between a professional software development company and an independent freelance developer is a difficult matter. Critics of offshore outsourcing worry that if too much IT-related work is farmed out to other countries, home-grown IT talent will "dry up.
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