Development, Outsourcing, Destinations
Development outsourcing destinations
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A new survey from Evans Data Corporation reveals that 40 percent of outsourced software development ends up in the hands of North American developers. In second place is India, with 24 percent, and Europe gets only 6 percent.
The survey, which canvassed 400 development managers from enterprises with over 1,000 employees, found that only 5 percent of North American companies outsource a majority of their software development. Overall, though, over half of companies outsource some amount of software development.
Interestingly, no less than 12 percent of North American companies were outsourcing a majority of their software development in 2002, so the number of companies leaning heavily on offshore has fallen.
But other research shows that the market is still growing, which means that the reduction in majority offshore adopters is more than made up for by the growth in overall adopters, regardless of commitment level.
Peering forward into 2005 and beyond, the growth in offshore development may also be driven by the increase in IT projects. The Evans Data survey found that half of all enterprises expect to raise IT budgets in 2005, with only 9 percent projecting smaller budgets.
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