ISG Provider Lens™ report sees growing demand for automated ADM services to contain app development costs
Enterprises in the Nordics are seeking ADM providers that use automation and agile methods to lower app development costs, according to a new report published by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
“ADM service providers are offering a whole set of automated app development tools, using AI, machine learning and other technologies.”
The 2021 ISG Provider Lens™ Next-Generation Application Development and Maintenance Services Report for the Nordics sees the move toward cloud transformation and cloud-native applications driving most application modernization projects and demand for ADM services in the region. There is also a high demand for help migrating enterprise resource planning (ERP) workloads to the cloud.
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“With a high cost of labor and a highly competitive market in the region, Nordic enterprises are looking to contain costs through automation,” said Ola Chowning, partner, Digital Strategy and Solutions for ISG. “ADM service providers are offering a whole set of automated app development tools, using AI, machine learning and other technologies.”
The report sees business models in the Nordics evolving to leverage open ecosystems and architectures based on application programming interfaces and microservices. As enterprises develop new apps, there is a gradual shift from project-based thinking to product-based thinking, with the focus on customer journeys and competitive features, the report adds.
In addition, Nordic enterprises are experimenting with low-code/no-code platforms to quickly provision apps to solve operational challenges, for example, provisioning a new feature in the collaboration tool for teams working from home.
Nordic enterprises are also embracing BizDevOps—product-focused application teams that manage the cradle-to-grave journey of applications. The DevOps concept is also being expanded to include DevSecOps for security and AIOps for operational excellence.
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Nordic enterprises are looking for practical approaches to scale security across the application lifecycle, given the increasing risks associated with the software supply chain. Conversations around security include questions on conformity to industry standards, key performance indicators (KPI) linked to security, and specific roles and processes for managing security.
The report sees growing adoption of robotic process automation and IT process automation, to drive efficiency and effectiveness in increasingly industrialized delivery models. The goal is improved business outcomes and zero disruption across hybrid landscapes that are part of everything-as-a-service (XaaS) business models.
The quality assurance market, meanwhile, is moving toward AI-driven, end-to-end automation of testing, enabling enterprises to achieve rapid digital maturity with increasing delivery velocity. In the next three years, continuous testing services will mature significantly with plug-and-play capabilities, embedded intelligence, and integration of customer feedback, as production analytics and other test assets continue to move to the cloud, the report says.
The 2021 ISG Provider Lens™ Next-Generation Application Development and Maintenance Services Report for the Nordics evaluates the capabilities of 22 providers across three quadrants: Application Development and Scaled Agile, Managed Application Services and Application Quality Assurance and Continuous Testing.
The report names Capgemini, HCL, TCS and TietoEVRY as Leaders in three quadrants and Wipro as a Leader in one quadrant.
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