SANTA CRUZ, CA, August 29, 2005 - According to Evans Data Corporation's new Summer 2005 Enterprise Development Survey, 19% of respondent's companies outsource development in order to utilize special expertise, a dramatic reduction from 44% five years ago. Cost savings have superseded special expertise as the main reason to outsource with 28% of respondents in the new survey, up from 15% five years ago.
Further, a third of respondents, 33%, indicate that they expect their companies to increase the use of outsourcing next year and only 6% of companies expect to decrease their outsourcing. Forty-five percent of respondents indicate that their companies outsource less than a quarter of their development and only 7% said that they outsource more than 50% of their development projects.
"Outsourcing once made use of high level experts to bring particular expertise to a development project but now we're seeing that outsourcing is much more likely to be used to save development costs," said John Andrews, Evans Data's Chief Operating Officer. "Most companies outsource less than a quarter of their development, most likely lower level programming tasks that are more cost-effective to outsource rather than devoting an in-house programmer to such jobs."
Other findings from the August 2005 survey of nearly 400 enterprise developers (developers working in companies of 1000 or more employees):
- Sixty one percent of enterprises have increased their IT budgets this year, up from 53% a year ago. Only 10% plan on cutbacks in their IT budgets.
- Larger enterprises hang on to their applications much longer than smaller companies. Forty nine percent of enterprises say they run their applications for more than five years; 29% of SMBs will maintain applications this long.
- Almost 60% of enterprise developers intend to use open source code in the next year.
- More than half of enterprise developers, 54%, plan to mobilize business processes to allow remote access to mission-critical applications in real-time.
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.
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