Goal of this research is to check the feasibility of blending Agile software development methods in offshore software development. We hope that this blend will result in a significant improvement in a software development cycle by benefiting from both worlds. There are many factors which contribute to the success / failure of offshore Agile project development, e.g. development strategy, project type, communication channel, cultural differences, distant locations and project size. This thesis focuses on the effect of development strategy and project types on the offshore software development. In this research, we also report on success rate and suitability of different types of software projects and development strategies using offshore Agile software development. The survey indicates that coding and testing phases of software development are best suited for off shoring in any iteration of discipline-oriented sprint life cycle development. We havefound that maximum success rates for feature-oriented development strategy is obtained by developing general modules of a project at distributed location and critical modules at onshore. The study observed maximum success rate for web-based applications and websites among others offshore developed projects.