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The technological innovation has brought in a number of benefits along with an equal number of issues. With competition tightening, organizations tend to increase investment in IT infrastructure, and move to make their workplace globally oriented with virtual desktops and workspaces.  But upgrades require a vast amount of investment both in the form of hardware as well as professionals. Hence organizations are opting to make use of the outsourcing industry sector.

The outsourcing industry develops the desired product, application or services based on client requirements. Outsourced Product Development refers to the method of exploiting the resources, skills and expertise of an offshore firm for the development and maintenance of a product. Product Development refers to a customized product or service for a client that precisely meets the requirements of the users. Built with a framework, which facilitates scalability and integration of any new features. The application development on the other hand is carried out from the functional point of view.

The outsourced product development provider takes the complete responsibility of all aspects of product lifecycle management.  The offshore development provider looks into every aspect from Product R& D Services, prototyping, development, testing, maintenance & support as well as upgrading and development of next generation products.  The important factors that these offshore development teams consider while developing products are documentation, adherence to design, and architecture
The changing business scenario, shorter product life-cycles, technological obsolescence, complexity of design engineering and the customer demands have paved way for the growth of the of the offshore product development providers. Further, with demands for newer versions of the older products, and introduction of new product development in the market segments, the entire lifecycle becomes an extensive activity both in terms of time and money.

Outsourcing of product development can take place at various stages of the product development lifecycle. This totally depends on the requirement of the client organization, their expertise and level of involvement and as well as the expertise available with the OPD service provider.  The offshore development may either be for product development, re-engineering and migration, maintenance and support, implementation or Quality analysis and testing or for all. OPD services are mostly opted by the start-up companies and the medium sized companies because of the cost savings. The large corporate sectors also now opt for these services as it provides them relief
from issues like data security and intellectual property protection.