Outsourcing software development is the new trend that has bugged the corporate world around the world. There are large numbers of companies that outsource work to startups/BPO so that their internal work burden is reduced, besides the fact that they get the work done at a much cheaper rate. But, the outsourcing is not provided to every BPO. The track record of the BPO plays a major role in the selection of outsourcing firms by larger companies.
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Outsourcing is very powerful ways of providing help to the companies. In fact, this is the only tool that can help the company to achieve more than the expectations in sufficiently very less time and not to mention with a higher profit margin. The varying cost of living around the globe and the advent of globalization triggered the trend of outsourcing work to parts of the globe where the cost of the job is low, but the skill is sufficiently good or better. The domain of software development was far to left behind. The increasing popularity of open source operating system and applications is a further boost to the offshore software development companies.
Custom software application development provided by the outsourcing firms is another reason for large companies to be lured into outsourcing software development work. Added to this, are the cheap rates and the better speed and accuracy of the work.
How to avoid treading the wrong path?

Sometimes cases occur when companies are not aware of the needs of the customers and they make products at their own will and then they lose their money in those products. So, it is very important that the companies first figure out the needs of the individual and then they produce their product accordingly.
Companies can do this by taking the opinion of the needs of the customers regarding the features they want. Once this is done then company can focus on achieving those features and forget about the rest of the things. If the companies are sure about the requirements of the consumers than that is the best case and in that situation companies can outsource as much as they like.