In today's global economy, outsourcing software development work to offshore jurisdictions is a strategic tool that can provide a competitive advantage to many companies. In addition to the primary goal of cost reduction, outsourcing can also develop technologies, provide access to world-class expertise, and allow a company to focus on its business operations and core competencies. According to Barney (1986), a competitive advantage can be obtained if the current strategy creates value. Competitive advantage is the strategic scope of every organization to achieve competitive advantage over its competitors and the result of effective and efficient strategy. Therefore, the source of competitive advantage cannot be imitated by competitors in the future. IT outsourcing involves delegating or transferring all or part of decision rights, business processes, internal activities and IT-related services to external providers, who develop, manage and administer these activities in accordance with the deliverables, performance standards and agreed outcomes as set out in the contractual agreement (Dhar, Gangurde, & Sridar, 2004). Access qualified expertise to focus on the company's core mission. The main reasons why a company may wish to outsource a task is when it requires qualified expertise to allow the company to focus on its core competencies and business activities. It's about focusing on the core mission of providing a high quality product and service to their customer. This is why the company makes sense by offshoring the task to people capable of carrying it out better. Additionally, the company also spends less on employee training, saves valuable working hours and will also reduce costs. In the middle of the document......there is no area that should or can be the source of unique competitive advantages. Once third, they are no longer unique but shared. They will also be designed for the lowest cost whilst meeting agreed service standards. This means outsourcing the things that the rich have to suppliers who can provide the same result at a lower cost. Example: When companies outsource services such as call center, medical billing, teleradiology, etc. To a low-cost country like the Philippines or India, businesses have access to quality services offered at a much lower cost. As a result, businesses can save up to 60% of their costs. Additionally, outsourcing has helped American companies cope with the destructive forces of globalization. Therefore, it is the seriousness of competition and the erosion of prices and profits associated with it..