Agile software outsourcing refers to the development of software using agile methodologies while leveraging an external provider or vendors. In traditional outsourcing models, the requirements are well-defined upfront and the development is more Waterfall oriented.

In contrast, agile outsourcing embraces flexibility and ability to adapt to changes. The key aspects include:

• Iterative development: Work is divided into short iterations (1-4 weeks) to frequently deliver working software.
• Customer involvement: Representatives from the client organization are actively involved, providing feedback/input at the end of each iteration.
• Adaptive planning: Features are prioritized based on business value. The product backlog and sprint backlogs can be adjusted as needs evolve.
• Emphasis on collaboration: Offshore teams work in collaboration with the client to ensure transparency and smooth communication of changing requirements.
• Agile tools and practices: Methods like Scrum, Kanban are followed. Tools like Jira, Confluence help track progress and facilitate collaboration remotely.

The benefits are reduced risks, ability to respond to change faster and deliver more business value incrementally compared to traditional outsourcing models which focus on singular large-scale projects. It requires buy-in from both client and vendor to reap the full rewards.

Here are some common reasons why companies choose to outsource their software development:

• Access to specialized skills/expertise - Outsourcing provides access to developers with skills you may not have in-house, such as expertise in specific programming languages, platforms or technologies.
• Cost savings - Using qualified offshore resources can significantly reduce development costs compared to hiring full-time in-house developers, especially for larger projects.
• Flexible staffing - Outsourcing allows scaling team sizes up or down quickly based on changing project needs without long-term employment commitments.
• Focus on core business - Outsourcing frees up internal resources to focus more on your strategic priorities rather than app development tasks.
• Avoid infrastructure costs - You avoid expenses associated with setting up and maintaining an in-house development team such as office space, equipment costs, benefit packages etc.
• 24x7 availability - By leveraging a global partner, development can continue even while your internal teams are not working due to different time zones.
• Lack of in-house resources/bandwidth - Your internal teams may lack the necessary time or skills to take on new projects, making outsourcing necessary.
• Access to specialized tools/processes - Many outsourcing firms have advanced development tools and processes that small companies cannot implement on their own.

Here are some key factors to consider when choosing a software consultant:

• Experience - Check how long they've been in business and number/scale of similar projects completed. Experience directly translates to better quality of work.
• Expertise - Make sure their specialized skills and technological proficiency matches your project needs. Check certifications, client testimonials.
• Communication skills - Ability to understand requirements clearly and collaborative nature is important for success. Assess communication style.
• Portfolio - Review case studies and work samples to get a sense of their capabilities and evaluate if their approach aligns with your vision.
• Pricing model - Determine which model (hourly, fixed bid etc) is appropriate based on project definition and your budget. Get competitive quotes.
• Reviews - Check third-party reviews on websites and ask for client references to get unbiased feedback on quality and service.
• Process - Do they follow a well-defined process? Consider factors like SDLC methodology, governance structure etc.
• Location - Onsite or remote work? Proximity can impact oversight and collaboration needs.
• Contract - Thoroughly review terms, expectations setting, IP clauses, payment schedules before signing.
• Cultural fit - Consider interpersonal dynamics and mutual understanding important too for a long term relationship.