News Analysis

Cost driving application development outsourcing

Cost has dramatically overtaken experience as the main driver for application development outsourcing.

Only 19% of the 400 enterprise-level developers surveyed by US market Intelligence Company Evans Data Corporation said they outsource to gain access to special expertise - a substantial drop from 44% five years ago. Some 28% noted cost savings as the chief reason to outsource, up from 15% in 2000.

“Outsourcing once made use of high-level experts to bring particular expertise to a development project, but we are seeing that outsourcing is much more likely to be used to save development costs,” says John Andrews, Evans Data Corporation’s chief operating officer.

The outsourcing juggernaut will continue to gain pace, with 33% of respondents expecting their companies to increase their dependency on outsourcing. But companies only outsource less than 25% of their development and use it primarily for lower level programming tasks.


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