Offshoring is the relocation by a company of a business process from one country to another. This is typically an operational process, such as manufacturing, or supporting processes, such as accounting. Offshore software development can include following services: product design and architecture, coding and testing; Internet/Intranet solutions, e-commerce, CRM, project management and other special web-services. India is one of the countries listed as the leaders in offshore development countries.
The main reason behind companies using offshore software development services is the higher development cost of the local service providers. The main motive behind offshore Development is to reduce the economic costs and thereby improving corporate profitability