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Software Development Company builds Software. What exactly is Software? In an understandable language for lay people, which I say that software is a collection of computer programs and information in the memory of a computer were seized for various functions. It performs various fruitful work for the users, the edge with hardware, the necessary services for application software, coordinated in time and provide controls. Once software is loaded into memory, the application of computers. The process consists of three phases but the instructions are passed on software application on the system software, the hardware that ultimately receives instruction. Technically, one would say that software as a service model is an application where a software vendor is working to develop a software application and hosts and operates the application for use by their users over the Internet / desktop. In a software development company focusing on custom software developed for one particular organization and targeted to multiple companies, organizations, companies or organizations. The second type of software off the shelf software that has already produced or developed and are more readily available and inexpensive. Software development has been observed that a large number of projects now a day is not the expectations in terms of functionality, cost, schedule and effective project management, which hinders the overall growth of the Software Development Company. It is followed by many companies, the software development of various models for the development of the software used most often would approach model, which cascade process, iterative process and includes formal methods. IT and Software Development Company in the world are considering outsourcing in a big way. Given the low cost factor and the availability of highly skilled developers. The main factors which will be kept in mind while outsourcing project “Track Record” of the company and “knowledge of the industry vertical.” The main reason for choosing a company with these two important factors, first, that the company that, for all sectors of the software provider may not be able to specialize in each area and to meet the time and effort for the company to the needs, says of the project. This may adversely affect the process and the cost of the project. Second, the track record, which will be examined only by the previous project company and taken up by all sorts of articles. At the same time it is important to consider the certification of the quality and the quality of the developers in the company. It is always advisable to visit the premises and examine all options before a project outsourcing. It is sometimes not surprising that physical or non-disclosure agreements are signed agreements between undertakings, while the software-outsourcing project in the offshore software Development Company. The contracts or non-disclosure agreements are signed is usually by e-mail and the whole project made a simple mutual trust between the two companies. If a project is planned to be outsourced, the deliverable should be clearly defined, while maintaining confidentiality can be right on both ends as the entire project-information, to a third person and can be critical for the company. Also, the seller, under no circumstances, should not interact directly with the staff of the Software Development Company. And of course not to forget the foremost reason the costs, it is often seen that the reason for the outsourcing of the project is often the most common reason for disputes between a supplier and manufacturer and is in all sectors of the world. Should clearly mention the cost of the project pricing and milestones on which the fees are paid as an important point to be included in the contract. The success of offshore outsourcing is based on the word “customer satisfaction”. Offshore Software Outsourcing is much about building relationships based on trust and mutual respect. Software Development Company should, reliable, quality and value-added services for clients that take care of the final business requirements of customers. A very dedicated team for a project proves to be advantageous outsourced point to the success of any project. Each team should be a project manager who fills the gap between the client and the developer. It is an appropriate goals for the team and customers should be defined each week of the development are made. And in case if there are any problems, developers should also be informed in time. Therefore, the concentration should be on selecting the right partner for software development during the evaluation of all aspects. Selecting the right partner is often a difficult choice to be defined as Software Development Company, which leads to several consequences at a later date made, sometimes make false promises. It is proposed to provide the resources (infrastructure, human resources, success stories, etc.) commit to the counterparty before everything in “offshore outsourcing”.