Savings, not skills, driving outsourcing
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There's been a substantial drop in the number of companies outsourcing application development in order to utilize external skills, as more companies instead turn to outsourcing for cost savings. Just 19 per cent of those companies polled are outsourcing to tap their suppliers' expertise, down from 44 per cent in the year 2000, according to Evan Data Corp (EDC). Twenty eight per cent said cost savings was their main reason for going out of house - up from 15 per cent. Evans, who polled 400 developers for its Summer 2005 enterprise development survey, said there has been a transition in needs from firefighting to solve the year 2000 problem to on-going, low-cost management of corporate systems like enterprise resource planning (ERP) and customer relationship management (CRM).
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