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Development outsourcing can be a feasible option depending on the company and project requirements. Sometimes it is a make or buy decision, at other times it could be somewhere in the middle. If the software is unique, more coordination is required between the organizations involved. This study uses various articles written on outsourcing and different companys press releases of new outsourcing contracts to examine the need to outsource, steps involved to assess the requirement of outsourcing and in which country and company to outsource to. It will also attempt to look at the process during outsourcing. In additional analysis, we also closely examine the factors that are critical for successful outsourcing like cost, quality, time, culture, security, ethical issues and intellectual property problems.