Many other IT enable outsourcing services like account outsourcing and payroll outsourcing, But now, according to latest trend, product development outsourcing is increasing in India. There are many small to medium size companies who are outsourcing parts or full product development to Indian counterparts.

So far, this trend was not much encouragable in software outsourcing. Only big companies like Adobe, Microsoft and Cisco were doing product development in India and that too inside their development center. But now many Indian companies have started product development and started entering into software outsourcing product development. It is considered that, increase in business will be around 100% in offshore outsourcing product development.

Product development requires specialised skills which not every software outsourcing company has. Product selling firms in US and Europe can reduce their software development cost by doing offshore outsourcing. On the other hand, they can concentrate on marketing and new ideas. Also, they may have to maintain people with specialised skills if they want to do on their own. If they want to open their own small development center in India, it can not be very useful. By aligning with Indian software outsourcing company, they can get access to wider skill area.

For Indian software outsourcing companies, product development is very lucriative market. Because, comapnies can charge much higer billing rate compare to software outsourcing services. On the other hand, it is also costlier to find and maintain quality software engineers.