Homeshoring Web Development in a Recession

Pete Prestipino — Tue, 03 Feb 2009 15:07:00 GMT

Perhaps business isn't really that bad after all. U.S. buyers are increasingly homeshoring their software and Web development work, according to oDesk. Work done in the U.S. has grown at a rate of 367% from 2007 to 2008, according to the popular freelance marketplace for online workteams.

"When people in the U.S. think of outsourcing, they typically think of lower-cost countries," said oDesk CEO Gary Swart. "But, we're seeing an interesting trend of U.S. companies increasingly turning to U.S.-based talent for their contracting needs."

Unfortunately, that may be thanks to the rise in layoffs. There is clearly an increase in the number of highly qualified developers available for projects (as seen below) which takes away from growth in other countries such as India and Russia. The influx of skilled developers also drives hourly rates higher.

IT Expects Greater Hosting Spend

Pete Prestipino — Fri, 03 Oct 2008 14:58:00 GMT

A recent customer survey by Rackspace Hosting indicates that customer demand for hosting is likely to incrase over the next five years. Nearly 70 percent of customer respondents indicated that the number of IT functions they outsource to hosting, SaaS or cloud service providers should increase over the next five years.

Respondents also revealed that the amount they will spend on hosting is expected to increase over the next five years. 47 percent said they spend between 0 and 20 percent of their IT budget on hosted services, while 30 percent spend 30 - 50 percent. Nearly 50 percent said that they expect the percentage of IT budgets spent on hosted services to increase over the next five years.

The customer survey also revealed that outsourcing IT functions to a hosting provider can save IT managers a significant amount of time. More than 40 percent said that outsourcing their IT functions to a hosting provider saved them from 30-50 percent of their time. Three-fourths of respondents believe that they can spend at least 25 percent more time on new projects because of the time they saved from outsourcing their hosting needs.

'Net Features : outsource

Homeshoring Web Development in a Recession

IT Expects Greater Hosting Spend