ISG Provider Lens™ report sees companies looking for assistance from app development providers to adopt agile methodologies
The market for application development and maintenance services is growing rapidly in Germany, as enterprises turn to outsourcing providers for speed and cost savings, according to a new report published by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
“The pandemic has increased the need for IT costs optimization and new technologies and applications to help enterprises stand apart from competitors”
The 2021 ISG Provider Lens™ Next-Generation Application Development and Maintenance Services Report for Germany finds German companies looking to ADM providers to help digitize their products, processes and services; adapt agile development methodologies and improve software quality. The business impacts of the COVID-19 pandemic have heightened the need to develop new applications and bring them to market quickly.
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“The pandemic has increased the need for IT costs optimization and new technologies and applications to help enterprises stand apart from competitors,” said Dr. Daniel Gerster, director, Digital Strategy and Solutions for ISG in Germany. “German companies are looking for new digital solutions that can be developed in short time frames.”
In addition to the pandemic, the Brexit situation in the U.K. has put new pressure on many German enterprises, the report says. With the U.K. being one of the largest markets for products and services from Germany, Brexit has increased the sense of urgency for German companies, leading them to focus on faster decision making and on creating clear value proposals in a volatile market.
While German companies embrace agile development practices, they are also seeing the limits of scaling agile methods in large corporations, the report says. The number of tools and frameworks are nearly endless, and when companies free their agile teams to choose their tools, both clients and providers find it difficult to integrate agile development processes.
In addition, DevOps continues to be a challenge for most enterprises, with less than half of all agile development teams using it efficiently, the report says. Automating repetitive tasks is necessary, and without automation, development teams tend to skip process steps, including quality assurance.
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Enterprises must address organizational change management, training, education, and automation to implement scaled agile, the report says. At the same time, many organizations continue to struggle with balancing legacy application maintenance and new applications running in agile mode.
With the acceleration of application development and adoption of the cloud, organizations are able to deploy applications more rapidly. However, cybersecurity risks, privacy regulations, and increasing client demand for high-quality digital services are compelling organizations to improve the quality of software delivered to both internal users and external clients, the report says.
Automation is becoming a competitive differentiator for ADM providers. Leading providers are integrating AI-powered automation throughout the development process and, in particular, into quality assurance to provide analytics dashboards and process improvement insights. State-of-the-art quality assurance has embedded AI, machine learning, automation and toolset integration, and is ideally integrated with AI-automated operations (AIOps).
The 2021 ISG Provider Lens™ Next-Generation Application Development and Maintenance Services Report for Germany evaluates the capabilities of 49 providers across five quadrants: Application Development and Scaled Agile, Agile Development Specialists, Managed Application Services, Application Quality Assurance and Continuous Testing Specialists.
The report names Atos, Capgemini, Cognizant and Wipro as Leaders in three quadrants and Accenture, Infosys and Materna as Leaders in two. DATAGROUP, HCL, msg Systems, Tech Mahindra and Zeiss Digital Innovation are named Leaders in one quadrant.
In addition, HCL is named a Rising Star—companies with “promising portfolios” and “high future potential” by ISG’s definition—in two quadrants. Arvato Systems, DXC Technology and Imbus are named Rising Stars in one quadrant.
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