The business of outsourcing rests on the concept of utilizing experts from outside the entity to perform definite tasks that the entity once performed itself. Outsourcing helps in lowering down the firm costs. Outsourcing helps in transferring the management or every day execution of a complete business function to an external service provider. It helps in redirecting or preserving energy which is directed towards the competencies of a particular business, and making successful use of technology, labor, capital, and human resources. Offshore outsourcing is the practice of employing an external organization. This organization is employed for performing some business functions in a country other than the one where the products or services are originally manufactured and developed. Offshore outsourcing is a function similar to offshoring where the functions are performed in a foreign country by a foreign supplementary. Rivals of the concept of off shoring suggest that the practice of transforming work to different countries with higher pay ups reduces the country’s own domestic employment and in this way household savings. Because of offshore outsourcing some customer service jobs and the jobs in the infotech sectors in the countries like United States and the United Kingdom have radically affected. Offshore outsourcing also helps in transferring the management or every day execution of a complete business function to an external service provider. In any type of offshore out sourcing the supplier and the client organization enter into a contractual agreement. This agreement defines different transferred services of the outsourcing. Not only the offshore outsourcing but also the nearshore outsourcing, Onshore Outsourcing and Homeshoring outsourcing are very common in the present context. Many times the concept of outsourcing and off shoring is used for one another in public conversation inspite of being important technical differences between the two. Every form of offshore outsourcing includes agreement with a supplier. This outsourcing many times may or may not involve some degree of off shoring. Off shoring is the work of transferring of the functions of an organization to other countries. The function goes on regardless of the issue whether the work is outsourced or stays within the same corporation. There are four basic types of offshore outsourcing which include the following: Software R&D — offshore software development ITO — information technology outsourcing BPO — business process outsourcing which works for things such as running call centers, processing insurance claims. KPO - knowledge process outsourcing covering such things as things of higher skill set such as reading X-Rays, performing investment research on stocks and bonds, managing the accounting roles for a business or executing engineering design projects. For a job in offshore outsourcing include the following criteria including the following: The work has a high information content; There is an important pay difference between the original and offshore countries; The job can be telework; The work is repeatable. The work can be transmitted over the internet; The work is easy to set up;