Web App Development Outsourcing Market, Not Mature

Computergram International, Dec 15, 1998

While outsourcing the web application development process is gaining popularity with Global 2000 companies, the market is fragmented and immature with no clear market leaders, the research firm Meta Group Inc has found. According to its predictions, by 2003, 75% of the Global 2000 will outsource all or part of their complex web application development projects.

While that's good news for the nascent industry, the bad news is that outsourcers get mixed reviews from clients. Large IT service firms get poor marks for creative content development and design, while small boutiques which excel in creative areas lack the expertise to integrate legacy applications. Overall, however, the smaller, more nimble companies performed better, the company said.