Enterprise Outsourcing: Trends in application services (Market Focus)

Enterprise applications continue to grow in complexity and functionality. The rise of service orientated architectures promise greater IT simplicity, but also require significant commitment to deploy and utilize. The evolution of applications technology and architecture means a greater focus on application services to enable and realize these benefits.

Report Highlights

Services like integration, testing and management help businesses globally solve their enterprise application issues. Key reasons for utilizing these services include access to the latest technology, expertise and greater efficiency through global sourcing and cost reduction.
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DATAMONITOR VIEW
CATALYST
SUMMARY
METHODOLOGY
ANALYSIS
Defining and segmenting the market for application services
The market for enterprise application outsourcing can be easily segmented
The fastest growing segments of the application services market are testing and management (with CAGRs of 20.1% and 11.7% respectively). The largest segment remains application integration (see later analysis on this area).
Application development services
Application testing services
Application integration services
Application management services
Application hosting services
The primary drivers: access to expertise and the latest technologies are primary motivators
Service orientated architectures are providing growth in application services provision
Total application outsourcing: a new trend?
The offshore impact: increased availability has ensued, but not necessarily lower prices
Offshoring is likely to impact application testing and development most
Overcoming the roadblocks: loss of control, security and location may limit services growth
Concerns regarding outsourcing are eroding as education and awareness increases
The key to success: packaging technology with services is key to successful deals
ACTIONS
Further reading
Ask the analyst
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Table 1: Applications services, 2003-2008
Table 2: Application services by region, 2003-2008
Table 3: Application services by vertical, 2003-2008
Figure 1: Application services, 2003-2008
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