Some people think that offshoring software development = outsourcing software development. That’s not the case. You have multiple options. Let’s talk about the main options and how they may or not make sense for you:

1)      Outsourcing (Project Based) – If you may have peaks in valleys in your workload (e.g., you have a project that requires a boost in resources for a period of time) it doesn’t make sense to hire full-time staff to address a period of peak demand.  In this model, you bid out your project to one or more software development outsourcing companies, and pick a winner. 

This is what most people think you are talking about when it comes to doing software development offshore.  It makes a lot of sense to outsource if you don’t feel that software development is a particular competence you need in house in your business.  Or you …