Outsourcing in the Enterprise Flourishes During Economic Downturn

SANTA CRUZ, CA, December 9, 2002 - Evans Data Corp.’s new Enterprise Management Issues Survey found that outsourcing development has increased by 175% in the last 18 months in large companies. More than 70% of companies are outsourcing some software development, after reaching a low of 40% in Evans Data’s May 2001 Enterprise survey.

Fortune 5000 companies are leading the return to outsourcing with about 80% of companies with more 10,000 employees outsourcing some of their development, compared to about 66% of companies who employ between 1,000 and 10,000 people according to the survey.

“After showing steady growth from the sharp dropoff in May 2001, the latest numbers indicate a large number of new projects being started. However, most of the companies surveyed are turning to outsourcing as an alternative to hiring of full-time IT employees whereas, in the past, most companies turned to outsourcing for additional expertise,” said Joe McKendrick, an analyst with Evans Data.

Other findings from the November 2002 survey:

• Linux use grew by 40% on corporate servers, 60% of enterprises reported using Linux on some of their servers compared to 43% six months ago. But the Linux deployment is being confined to less than a quarter of an enterprise’s systems and only 3% report running Linux on more than half of their servers.
• Intentions to use Storage Area Networks and disk arrays in the next two years increased by 15%, to 62% today from 54% six months ago.

Evans Data Corporation provides regularly updated IT industry market intelligence based on in-depth surveys of the global developer population. Evans' syndicated research includes surveys focused on developers in a wide variety of subjects.

Copyright 2007 Evans Data Corporation. All other company names, products and services mentioned in this document are the trademarks and property of their respective owners.

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