Trends in Application Development and Maintenance Offshoring

McLean Report: Research Note


Over 490 respondents recently provided detailed information on application development and maintenance outsourcing. Of this group, 14% provided detailed information on offshore implementations. The Info-Tech survey findings and trends are summarized below.

Offshore Application Development and Maintenance

Application development and maintenance offshoring (ADMO) is the outsourcing of the design, installation, customization, deployment, and operations of an application to a non-domestic third party. Depending on the country being outsourced to, enterprises can expect approximately 20%-30% in cost savings over domestic outsourcing alternatives.

Few Enterprises Offshore

Despite growing popularity and the potential for significant cost savings, few enterprises offshore their application development and maintenance (see Figure 1).

 

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