It is broadly classified as:

 

Product Component outsourcing
Process Component outsourcing
Software Acquisition

 

Product Component outsourcing

 

When a single developer is unable to develop the required product either due to lack of resources or inability to do so, the Organization will outsource the whole or part of the project. This will enable the company to focus on other matters which may be more essential to the profitability of the business.

Process Component outsourcing

 

Under this type of outsourcing, the external group is contracted to perform all the functions of the client’s process components.

Software Acquisition

 

The activities are performed in a number of well defined steps. The steps that are followed here in a sequential order are:

 

Design
Developing
Programming
Testing
Maintainence

 

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