Software Development Company builds Software. What exactly is Software? In a layman's language I would say that software is a collection of computer programs and information seized in the memory of a computer for various functions. It performs various fruitful jobs for the users, which edge with hardware to offer the necessary services for application software, which in time coordinates and controls. Software once been loaded in the computers memory executes the application. The process involves three stages wherein the instructions are passed through application Software, through system Software, to the hardware, which eventually receives instruction.

Technically, one would say that Software as a Service is an application model where a software vendor works on developing a software application and hosts and operates the application for use by its users over the Internet/desktop. In a Software development company the focus is on Custom Software, which is developed for a specific organization and targeted to several business, entities, companies or organizations. The second kind of software will be off the shelf Software that is already produced or designed and are more readily available and cost effective.

Software development process has been observed that large numbers of projects now a day are not meeting the expectations in terms of functionality, cost, Deadlines and effective project management which hampers the overall growth of the Software Development Company.

There are lot of Software Development Companies that follow different models for the development of the Software, most commonly used would be Process Model which includes Waterfall Process, iterative process and Formal Methods.

IT Department and Software Development Company across the globe are considering outsourcing in a big way. Considering deeply the cost factor and the availability of highly qualified developers. The major factors that are kept in mind while outsourcing any project is “Track record” of the company and “Knowledge of the Industry Vertical”. The main reason to choose a company with these two important factors is firstly, the company that says that it caters to all verticals in software development may not specialize in any area and which may take lot of time and effort for that company to fulfill the needs of the project. This may adversely affect the deadline and the cost of the project. Secondly, the track record that can only be studied by the previous project company has taken up and by taking all possible references. At the same time it will be important to take into account the quality certification and quality of developers in the company. It is always advised to visit the premises and consider all options before outsourcing a project.

It will be surprising that sometimes no physical contracts or non-disclosure agreements are signed between companies while outsourcing the Software project to offshore Software Development Company. The contracts or non-disclosure agreements signed usually are via email and the whole project is taken up on simple mutual trust between two companies. When a project is planned to be outsourced the deliverable should be clearly defined while maintaining the confidentiality rights on both ends as the entire project information is let out to a third person and can be critical for the business. Also the vendor under any circumstances should not directly interact with the employee of the Software Development Company. And of course not to forget the foremost reason the cost, it is often seen that the reason for outsourcing the project often becomes the most common reason for arguments between a supplier and vendor and is applicable in all industries in the world. Thus, a clear mention of the total project pricing and milestones at which the charges will be paid should be included as an important point within the contract.

The success of Offshore Outsourcing rests on the word “customer satisfaction”. Offshore Software Outsourcing is much about building relationships based on trust, and mutual respect. Software Development Company, should provide reliable, quality, and value added services to clients that take care of the definite business needs of the customer. A highly dedicated team for a project proves to be a beneficial point for the success of any outsourced project. Any team should have a Project manager, which fills the gap between the client and the developer. There should be proper goals defined for the team and client should be updated every week of the development made. And in case if there are any issues developers can be kept well informed in time.

Thus, the concentration should be on selecting the right partner for Software Development while evaluating all aspects. Selecting the right partner is often defined as a difficult choice to be made as Software Development Company, which leads to several consequences at a later stage, makes sometimes-false promises. It is suggested to review the resources (Infrastructure, personnel, track record etc.) of the business partner well before committing anything in “Offshore Outsourcing”.