Outsource Software
IT Offshore Outsourcing Market Numbers
According to peter971 from AlwaysOn
Fortune 1000 companies (F1000) have flocked in droves to outsource their software development as a way of increasing efficiencies and saving millions of dollars. More than 70% of the F1000 outsource some portion of their information technology today, making this activity completely mainstream. India alone attracts $18 billion of this spending at present and this number is growing at almost 40% year over year. Far less common has been the move by Independent Software Vendors (ISV’s) and Application Service Providers (ASP’s) to outsource their own core software product development. For obvious reasons, ISV’s have been reluctant to outsource something as core as their product research and development, but an increasing number are doing so – more are viewing this as way to increase revenues and reduce time to market.
This market for Outsourced Product Development (OPD) is currently pegged at $1 billion but is expected to grow to almost $4 billion by 2008. According to analysts, global sourcing of product development will no longer be an optional business strategy by 2007-2008. It will become standard operating procedure. With offshore outsourcing increasingly accepted as a key competitive strategy in the global economy, the production cycle for technology-centered products will require global resources and global delivery.
