Software outsourcing is beneficial to the foreign companies as well. Outsourcing helps to cut down costs drastically. The foreign companies make a saving of 40-50 % by outsourcing to India. Outsourcing to Indian companies ensures a high quality output with timely submissions and at a fraction of the cost that they would actually incur. Thus, software outsourcing definitely helps to make a huge saving for the company that is outsourcing the work. Outsourcing can be carried out either personally by hiring professionals in the field or through agencies who undertake such work. India with its huge pool of experienced, talented and skilled personnel proves to the best available option for foreign companies as Indian companies are in a position to undertake highly complex projects and understand the significance of meeting deadlines - all at very attractive rates.

India offers varied services that are not restricted to the field of software outsourcing alone. US companies are the main clients that the Indian IT firms cater to followed by the UK, Germany, France and several other developed nations that find India to be a very attractive destination when it comes to custom software development outsourcing. Statistics go to show that as high as 40% of all IT work is from India. Cost factor is a major attraction when foreign companies take into account Indian companies for the purpose of outsourcing. By making a huge saving in terms of cost, the foreign companies stand to gain by having additional funds available for investing elsewhere which would be helpful in furthering their business prospects.

Before actually making the decision to make the outsourcing deal and signing on the dotted line there are several factors that must be considered and evaluated. The company outsourcing work should first take into account the expertise and experience of the software company to which the work is being outsourced. The history and performance of the company in the field and the skill that they have for taking up the assignment must be properly studied. The credibility of the company in the particular field must be considered before handing over the work. Most IT consulting companies in the field are working towards getting certifications like ISO that are accepted internationally and itself speak for their quality and competence. All aspects of the company taking the work must be considered and proper evaluation of their services, the infrastructure available, the experience and the capability of the company to actually undertake the project must be carried out before outsourcing the work.

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