Outsource marketplaces are websites to connect to buyers and sellers of software development services. Buyers and sellers of services are located worldwide. Therefore, outsource marketplaces are often linked to the following terms: offshore, nearshore, inshore, ruralshore when describing procurement of software development services.

Buyers and sellers use software development outsource marketplaces similar to using auction sites like eBay. A buyer defines and posts a software development project to an outsource marketplace, whereby providers can bid on delivering the project. Posted projects have a limited amount of time for providers to bid on the project. In addition, often both buyers and providers are rated based on past experience. Posting projects is usually free for buyers. Posting, bidding, rating, connecting buyers and sellers makes outsource marketplaces similar to auction sites like eBay.

Most outsource marketplaces offer some kind of process to protect buyers and sellers from scams. A popular method is built in escrow and arbitration. This protection most often requires that communication between buyer and seller is accomplished through the outsource marketplace private message boards.

The landscape of outsource marketplaces is rapidly changing. Many new sites appear on a daily basis. Outsource marketplaces provide you with a convenient opportunity to find new software development partners. Make sure to thoroughly research the outsource marketplace before signing up.

Flat World Software Development provides resources and community forums/reviews for offshore and outsource software development.