For Sourcing & Vendor Management Professionals

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	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

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Executive Summary

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.

TABLE OF CONTENTS

• European Companies Still Balance Internal And External Development
• Companies Pursue Efforts To Maintain Commercial Packaged Applications

RECOMMENDATIONS

• Internal Development Entities Must Shift To A Business Enabler Role

WHAT IT MEANS

• Strictly Limit Custom Apps To Those That Provide A Competitive Market Edge
• Supplemental Material
• Related Research Documents

This is an excerpt

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