Abstract
These days, many software companies handover their software projects to outsourcing organizations. Outsourcing refers to handing over some or complete business process activities to some outside manufacturer. Many software companies now have started feeling the need of outsource development due to numerous factors that include high cost of experienced in-house developers, tough project schedules, lack of knowledge about domain and technology of certain complex software systems. Outsourcing is causing globalization, knowledge sharing, achieving quality and minimizing production cost. Software project outsourcing is common in many software companies, this makes it an active and interesting research area. This paper investigates the current state of the art in software project outsourcing. An effort has been made to answer an important question about outsourcing “Is software outsourcing a gain or loss?” A detailed comparison of in-house software development and outsourced software development has been conducted to show when and where outsourcing is useful for an organization and where it is not.
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