March 20, 2007

European Software Services Survey, 2006 To 2007

Enterprises Still Favor Custom App Development, But Change Is In The Wind

by Richard Peynot

with Andrew Parker, Onica King

Executive Summary (This is a document excerpt)

Continued commoditization of business processes has driven enterprises to direct significant budget toward maintaining commercial packaged applications and outsourcing application development. However, Forrester's new annual software services survey finds that these enterprises often retain in-house custom development teams to meet the unique requirements of their business and establish an edge over competitors. To strike the right balance between limited internal resources and the increasing spectrum of commercial and outsourced services, these development departments will have to become business enablers that work strategically with IT sourcing professionals in their "build versus buy" decisions.

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