The majority of application development effort will be sourced externally in 2008. An increasing number of large organisations will also outsource maintenance of their major applications to offshore providers. In spite of this, most IT organisations will fail to significantly reduce costs or improve their ability to manage and operate their production enterprise applications throughout the broader application lifecycle. Larger enterprises will also utilise external resources that reside internally and are co-managed (i.e., report to both internal and external management).