Outsourcing applications save on outlay for firms

Outsourcing applications through a software-as-a-service (SaaS) model can save projects between a quarter and 40 per cent, it has been suggested.

Gartner's SaaS Customer Relationship Management (CRM) Reduces Costs and Uses of Consultants report states these efficiencies are made through lower expenses and implementation costs.

Vice president and analyst at the firm Michael Maoz claims external service providers in the CRM field will become less relevant as the application outsourcing market expands.

He says: "There will be significant savings in infrastructure and resource costs in migrating SaaS."

Claiming the model is becoming increasingly popular for a number of projects, the analyst asserts there will be an expansion in the call centre sphere of approximately 20 per cent a year until 2012.

According to IDC, domestic IT outsourcing - or 'homeshoring' - is becoming increasingly attractive in the economic downturn.

It predicts there will be a compound annual growth rate of 19 per cent between 2008 and 2012.