The history of offshore software outsourcing India is one of the phenomenal growths in a very short duration. The idea of offshore outsourcing and software development has its roots with the competitive edge in the respective industry. During some previous years the meaning of the term Offshore Software Outsourcing has undergone with lots of changes. With starting from the front, the shifting of manufacturing unit to those countries providing significant cheap labor at the era of Industrial Revolution, has taken outsourcing with a new meaning at present world. In today’s world Information Technology has become the backbone of International Businesses.

Offshore Software Outsourcing is the process by which any company hands over part of the work to another organization, and making it responsible for the design and implementation of the enterprise business procedure under obligations of strict guidelines regarding requirements & specifications from the Offshore Outsourcing companies.

One can say that the Business Process Outsourcing is advantageous for both the service buyer and outsourcing service provider, as it help in enabling the offshore outsourcing service buyer to reduce the development costs and increase quality for functional / non core areas with more utilization of the expertise and competencies at maximum length. And now one could see the real advantage for the service organizations from India as the time of maturity, prosper of building core capabilities with certain possibilities by the Offshore Software Outsourcing firms.

Since from the time of globalization in India, exactly from the year 1990 government of India has started programs’ regarding economic reform committed towards liberalization and privatization. Till the starting period of year 1994 Indian telecom sector was under direct control of government and the ownership of units were provided to states with full enjoyment of a monopoly in real market. Further in the year 1999, the New Telecom Policy brought some changes by introduction of Intellectual Property telephony that helped to end monopoly of the state government on international callings. This reduced the heralded of the golden era for the Information Technology Outsourcing, Software Development Outsourcing industry with ushered in a large amount of inbound/outbound call centers & data processing centers.