The economic downturn has forced many companies in the U.S. and Europe to reduce spending across the board. For the information technology organization in these companies, this financial hardship means falling behind in the fast moving web service oriented economy, “Across most sectors of business , IT-driven systems, applications, and services are of increasing value to the way that businesses operate, and having such facilities compromised to even a minor extent can severely impact business efficiency, “ according to analyst firm, The Butler Group. “Many organizations use Web-driven technology to improve the efficiency of their operations and to maximize their revenue streams through the increased exposure and availability of their services via all available channels.”

The solution for many companies faced with reduced budgets is outsourcing web application development offshore. The result is many projects redlined by budget cuts are now being completed. Market research firm, Gartner Group predicted business process outsourcing would grow 10.5 percent year over year between 2007-2012 – reaching $55.9 billion in outsourced operations by 2012. Allie Young, an analyst at Gartner Group stated “The potential for outsourcing to address immediate cost pressures as well as long-term recovery goals will be unprecedented in the coming months and years.” Indeed, the improving prospects of outsourcing companies indicate that business is opting for the outsourcing solution. “Although things look gloomy for the larger global economy, outsourcing will be adopted by more organizations to help them work through financial and competitive challenges,” Ms. Young concludes.