Given the rapid growth of this sector, several companies have started to use offshore development in China, India and other countries with a lower cost per developer model. Several new Web 2.0 platforms and sites are now developed offshore while management is located in Western countries.
There are several different approaches to software development. Some take a more structured, engineering-based approach to developing business solutions, whereas others may take a more incremental approach, where software evolves as it is developed piece-by-piece. There are significant advantages and disadvantages to the various methodologies, and the best approach to solving a problem using software will often depend on the type of problem.