Outsourcing refers to a company that contract with another company to provide services that might otherwise be performed by in-house employees. Many large companies now outsource jobs such as call center services, e-mail services, and payroll. These jobs are handled by separate companies that specialize in each service, and are often located overseas.
There are many reasons that companies outsource various jobs, but the most prominent advantage seems to be the fact that it often saves money. Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they don't have to provide benefits to their workers, and have fewer overhead expenses to worry about.
Outsourcing also allows companies to focus on other business issues while having the details taken care of by outside experts. This means that a large amount of resources and attention that might fall on the shoulders of management professionals can be used for more important, broader issues within the company. The specialized company that handles the outsourced work is often streamlined and often has world-class capabilities and access to new technology that a company couldn't afford to buy on their own. Plus, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries.
There are some disadvantages to outsourcing as well. One of these is that outsourcing often eliminates direct communication between a company and its clients. This prevents a company from building solid relationships with their customers, and often leads to dissatisfaction on one or both sides. There is also the danger of not being able to control some aspects of the company, as outsourcing may lead to delayed communications and project implementation. Any sensitive information is more vulnerable, and a company may become very dependent upon its outsource providers, which could lead to problems should the outsource provider back out on their contract suddenly.
While outsourcing may prove highly beneficial for many companies, it also has many drawbacks. It is important that each individual company accurately assess their needs to determine if outsourcing is a viable option

Information technology is one of the most popular areas of outsourcing. It can, however, involve a range of issues. For example: software, equipment, premises, people, third party agreements, and so on.
All these will need to be carefully considered, and steps to address them included in the transition plan, the SLA and the outsourcing contract.

THE EARLY STAGES
When considering the outsourcing of IT services, management must be very clear with respect to its expectations. It must clearly define the services themselves - in other words, exactly what it wants to be delivered.
It is always a good idea to measure these against the existing services, almost a benchmarking exercise. At the very least, this will provide useful data for use downstream, when consideration of suppliers is undertaken.
Having defined the requisite IT service, costs should be considered. Again, it is wise to start close to home. What are the current costs? How are these projected to increase (or decrease)?
Essentially, a picture is being built here of where the organization currently stands, and where it wishes to stand, with respect to the IT service. Having established this information, the path to IT outsourcing should be far clearer.

Benefits of Outsourcing

By outsourcing, you can:
1. Reduce overheads, free up resources
2. Minimize capital expenditure
3. Eliminate investment in fixed infrastructure
4. Offload non-core functions
5. Redirect energy and personnel into the core business
6. Free your executive team from day-to-day process problems
7. Focus scarce resources on mission-critical projects
8. Get access to specialized skills
9. Reduce need for internal commitment of specialists
10. Save on manpower and training costs
11. Control operating costs
12. Improve efficiencies through economies of scale
13. Improve speed and service
14. Level out cyclical or seasonal fluctuations
15. Eliminate peak staffing problems
16. Provide the best quality services, products and people
17. Be reliable and innovative
18. Provide value-added services
19. Increase customer satisfaction
20. Establish long-term, strategic relationships with world-class service providers to gain a competitive edge
21. Enhance tactical and strategic advantages
22. Focus on strategic thinking, process reengineering and managing trading partner relationships
23. Benefit from the provider's expertise in solving problems for a variety of clients with similar requirements.
24. Obtain needed project management and implementation consulting expertise
25. Acquire access to best practices and proven methodologies
26. Spread your risks
27. Avoid the cost of chasing technology
28. Leverage the provider's extensive investments in technology, methodologies and people
29. Reduce the risk of technological obsolescence
30. Increase efficiency by consolidating and centralizing functions
31. Keep pace and minimize the impact of rapid changes in technology without changing your infrastructure
32. Reduce the overall management burden while retaining control of strategic decision making.

Arber Technologies  Provides software development outsourcing. It has considered the following views during outsourcing

At Arber Technologies , Usually offshore software outsourcing consists of:

Thus, offshore software outsourcing at Arber Technologies is a contract / subcontract with an external service provider for purposes like development of complete or partial software products or projects and the purchase of packaged or customized software products.
Advantages of Software Outsourcing at  Arber Technologies: