E-MailSearching for Maturity: The Impact of CMM on Outsourced Software Development
It is generally agreed that outsourcing has become an acceptable and, in some cases, preferable alternative strategy for solving a variety of technical and nontechnical business problems. Within the software outsourcing arena, application development and maintenance sourcing continues to show growth trends. In 2003, more than half of all Fortune 500 companies outsourced some of their software development. It is estimated that by 2005, more than 80% of such companies will join the trend [3]. And the vast majority of that work is going offshore. According to a recent CIO report, "Eighty-six percent of IT executives surveyed said they currently outsource application development offshore" [1]. What's driving this growth trend? The short-term cost savings of offshore outsourcing are simply too large to ignore. In addition, offshore outsourcing part or all of the IT shop allows companies access to a greater depth and breadth of IT skills, flexibility in staffing levels, and financial leverage. Global competition has US companies pulling out the stops to manage expense, improve responsiveness, and increase profitability. The offshore trend is being driven as much by the boardroom as anywhere else in companies today.
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