Since my earlier blog post on optimizing your software development sourcing strategy, we have published a report I co-authored with Mike Gilpin on this same topic: "Update Your Application Development Sourcing Strategy To Drive Innovation and Differentiation." In this report, we explain how:

• Software development is a key engine for business innovation today.
• The right software development sourcing strategy drives more success.
• You should reshape your strategic sourcing strategy to succeed with BT application delivery.

For firms that value innovation and differentiation highly in the software they deliver, it turns out that the right answer is neither just hiring a bunch of developers to build a strong internal team nor just tapping outsourcing firms to work around lacking the internal talent you need to excel. Firms that excel at this today are taking a mixed approach, one that's tailored specifically to meet the unique requirements of delivering differentiating and high-value software.

How are you doing it? Can you really innovate or differentiate with a packaged app without falling into the trap of writing a huge amount of custom code?

Are you having more success with custom or with packaged apps when it comes to innovation or differentiation?

Is the internal versus external talents decision-making different for packaged versus custom apps?

Share your experience on any of the above questions with us.