Thousands of companies, whether big or small, have been outsourcing a part of their departments and/or projects for years. Today’s outsourcing industry is expected to grow by 37% annually between 2007 and 2010 because it is much more specialized compared to outsourcing a few years back. One growing specialization under IT outsourcing is product engineering. Many leading IT companies have strategically planned PEO in order to realize significant cost savings. However, most of them have gained quality and reliability as well. On the other hand, some companies have different experiences with outsourcing product engineering.