Offshore Software Development is becoming more popular with many companies who are looking to save money and help increase international business. Often sending a project offshore can save money due to cheaper development costs, then this saving can be pointed to other development projects that can be seen to be more profitable. This is a possibility because offshore workers accept a smaller hourly wage, there are more software development experts, and fringe benefits are often cut, i.e health care. Software development offshore also benefits countries that did not have enough jobs before companies started outsourcing work.
Companies that utilize offshore development can lower their annual outgoing due to lower salary bills and lower overheads such as large offices and computer equipment. They will also not have to pay as much in taxes as many countries give companies tax breaks for offering jobs. Software development offshore has become very popular due to the reason mentioned above. More and more companies are conducting business overseas which means that the international business place is shrinking. As more people are managing teams that live in other countries, the more projects that are being completed. This can benefit everyone who works for the company.
As long as companies can make a profit from offshore development, it will continue to be a viable alternative to in house programming. Due to laws being different from country to country, many companies are saving money by exploiting loop holes etc and sending their work offshore. Language barriers however can cause big problems when communicating specifications and requirements, this is especially important to companies lying within the customer services factor. Not being able to communicate with others can cause companies to lose customers. Offshore development is effective in some fields, but not for others.
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