The application outsourcing services market continues to be one of the better stories in the Canadian IT services market. "The application outsourcing services market benefits from the continued interest in IT outsourcing and business process outsourcing services as well as the externalization of IT applications and processes. In addition, application services are emerging as key offerings in their own right. Furthermore, software as a service and hosted application management offerings are poised to become a greater component of the outsourcing services market in this country." says Nigel Wallis, research manager, Canadian application services research.