What is the term for outsourcing systems development to external vendors in another country?

The correct term for outsourcing systems development to external vendors in another country is offshore software outsourcing. This practice involves contracting with third-party software development companies that are located outside the client’s home country, often to take advantage of cost savings, specialized skills, or faster turnaround times. Offshore software outsourcing has grown in popularity due to advancements in communication technologies and the ability to manage projects effectively across borders.

In contrast, domestic outsourcing refers to the practice of outsourcing within the same country, which does not capture the international aspect implied in the question. Foreign franchising pertains to expanding business models internationally through franchises, which is unrelated to software development outsourcing. Global development might suggest a broader scope, including both domestic and international elements, but it lacks the specificity directly linking it to outsourcing in a foreign context. Hence, offshore software outsourcing is the most accurate and appropriate term for the situation described.