Software development is a highly technical job. To develop software in-house requires time, skilled manpower, and expensive programs and equipment.
Remote development provides you with immediate, short or long-term access to a broad range of specialized technical skills. Remote development allows your "A" team to focus on other critical work. This means you get to market faster while maintaining your technological and cost advantage.
Remote development is synonymous with flexibility. When facing a large project but of short duration, you can use remote development to limit the number of new employees and administrative support personnel you must take on.
For start-up companies, remote development allows you to go farther on your venture capital dollars. Software companies can contract out the "heavy lifting" and concentrate their more expensive workforce on the higher value-added tasks.
Remote development allows you to cut production costs without the need to compromise on either speed or quality. Remote development allows you to really concentrate on your core expertise. Can you afford not to go offshore when the competition is?