There are several issues related with offshore development methodology. First time clients usually have a lot of apprehension initially and at Trellisys.net we proactively engage our clients to dispel initial fears. One of the most common issues is with respect to intellectual property and ownership of information. Ownership issues are always discussed up front before commencement and are clearly defined in the agreements.
Another grey area is with respect to monitoring of performance and value-add. We have implemented systems to enable our clients to monitor service levels and the quality. An important aspect of service level agreements is that both the purchaser and the outsourcer need to be aware that SLAs are not inflexible and there should be a review period in the SLA to cover changing purchaser requirements and new technology.