eWeek: In a recent study by Computer Economics, 33 percent of companies surveyed said that they outsourced application development. Although application development is still the most likely IT activity to be outsourced, those numbers are down about 20 percent from the two preceding years' studies.
"Such a precipitous drop indicates the overriding factor driving the downturn was the deepening recession, which caused many organizations to curtail spending on new initiatives and delay ongoing projects where possible," says the report. "As application development is project-based, application development outsourcing activity is far more subject to swings in the economic cycle than outsourcing of data center, help desk or other IT functions. Outsourcing activity declined across the board last year, but no single function declined more than application development."