No single business model was cited as being optimum for offshore development. About half of respondents worked with an offshore provider while a third operated a subsidiary or captive. A quarter utilized a hybrid model of both approaches, SIIA said.

Companies not doing offshore development cite concerns including product quality, loss of control, fear for intellectual property and impact on internal staff morale. Some 91 percent of those not offshoring said loss of control was somewhat important or very important in their decision to not take the offshore route.

is a trade association for the software and digital content industry.