Offshore outsourcing as a strategy for management of Information Technology (IT) development and maintenance has gained momentum during recent times. A trend that began as a tactics to move low-end IT work to offshore location to cut costs of business computing has now entered the realm of mainstream decision making, which some call a mega trend. The increase focus on offshoring is prompting business leaders and management gurus to examine successful practices of globalization. The study aimed to investigate the impact of offshore outsourcing on IT sector with respect to communication model and various management dimensions. Secondly it is also to explain how the process improvement can help project execution model. Outsourcing of IT is not an isolated trend but part of a bigger shift towards the globalization of business processes. As outsourcing has moved beyond IT to include a broader range of business process, it has evolved from a short term tactic into a long term strategic play.

Keywords: Outsourcing, Information Technology, Project Management, Strategy.