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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