- Major Studies
- Advisory Reports
- Valuation Data
Application development is the most frequently outsourced IT function. According to our annual study, two-thirds of all organizations outsourced some application development work last year. By most accounts, this practice has been rebounding from its recessionary low. In fact, our study indicates that application development outsourcing has now risen above pre-recession levels.
Application development outsourcing growth remains strong, but there are several challenges to overcome. First, although it is the most frequently outsourced function, our findings show that the customer experience has been less than spectacular: application development outsourcing ranks low in cost and service success in comparison to the outsourcing of other IT functions.
The outsourcing profile in Figure 1 from our report, Application Development Outsourcing Trends and Customer Experience, shows how outsourcing of the application development function compares with the outsourcing of 11 other IT functions in the parent study, IT Outsourcing Statistics.
In brief, our study makes the following findings:
In light of current trends, the full study is designed to help IT executives compare their application development outsourcing activity and experience with other IT organizations. The study uses three metrics to measure application development outsourcing: it determines how many organizations outsource application development (frequency), how much of the workload is typically outsourced (level), and the change in the amount of work being outsourced (trend). We also measure the cost experience and service experience of companies that outsource this function, and determine how outsourcing activity and experience vary by organization size and sector.