Aussie outsourcing due to rise
Aussie outsourcing due to rise
Aug 31, 2005: Although outsourcing in Australia has declined since five years ago in terms of using seeking special expertise, it is due to rise over the next year for cost saving reasons, according to Evans Data Corporation's new Summer Enterprise Development Survey.
It reports that 19% of the people interviewed in the survey outsource development in order to utilise special expertise, which is down from 44% five years ago. However, 28% of the respondents said that they chose to outsource to save money now, which is up from 15% five years ago.
In addition, 33% of people expert their companies to increase the use of outsourcing next year and only 6% of these companies expect to decrease their outsourcing.
John Andrews, Evans Data's Chief Operating Officer, talked about the change in outsourcing as a concept in Australia.
"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.
"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."
The survey involved 400 enterprise developers who worked in companies of 1000 or more employees.
The results also found that 61% of enterprises have increased their IT budgets this year, which is up from 53% a year ago and only 10% plan on cutbacks in their IT budgets.
Also, 60% of enterprise developers intend to use open source code in the next year.
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