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Outsourcing is not a new idea, but in difficult economic times as companies offload fixed overheads, it becomes an attractive option, both operationally and strategically.

As far as software systems are concerned, the principle markets for offshore development are India and Eastern Europe.

The key benefits of offshore software development are clear: lower costs in real terms as the skills and management required to deliver a project become the responsibility of the provider. Meanwhile the client defines the requirement and expects the product to be delivered.

With any project which is delivered and managed externally, there are always going to be inherent risks as well as benefits. So the advice for anyone considering outsourcing a software project, whether in the UK, Europe or further offshore, is to minimise the risks while ensuring successful project delivery, reducing costs and realising the competitive benefits.