Providers help companies implement Agile and DevOps methods and AI-powered features to keep up with changing software requirements, ISG Provider Lens report says
A growing number of enterprises in the U.S. are adopting Agile and DevOps methodologies as new approaches to application development and maintenance (ADM) emerge, according to a new research report published by Information Services Group (ISG) a leading global technology research and advisory firm.
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“The growing use of AI, and even generative AI, is having a strong effect on ADM”
The 2023 ISG Provider Lens Next-Gen ADM Services report for the U.S. finds that changes in ADM have accelerated in recent years. The trend particularly affects enterprises that are undergoing digital transformation and turning toward DevOps, which breaks down the division between development and operations to make software development and deployment more efficient.
“Companies want to develop applications that align with their IT modernization initiatives,” said Shafqat Azim, ISG Partner and Americas lead, Digital Transformation. “Agile and DevOps help them move into a digital, cloud-based future.”
Many organizations are focused on developing software that provides an exceptional customer experience, including outstanding user interfaces, the report says. New development methods enable companies to bring applications to market faster, improve software quality and foster closer collaboration among developers. They also give enterprises more flexibility to adapt to changing needs and make it easier to develop applications that meet specific business requirements.
DevOps adoption has gone hand in hand with increasing use of site reliability engineering (SRE), which helps organizations increase automation and monitoring to create highly scalable and reliable software systems with predictable operations, ISG says. Companies are using SRE to improve the quality of applications before deploying them in production, thereby reducing downtime.
Increasingly, enterprises are also seeking ADM services with an AI component, the report says. Among other things, AI enables accurate prediction of resource needs and bottlenecks through analytics and provides design tools that generate prototypes based on user requirements and design principles. Generative AI offers new capabilities, such as automatically completing code lines or writing snippets of code based on natural-language descriptions, that enterprises are closely watching.
“The growing use of AI, and even generative AI, is having a strong effect on ADM,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers are helping clients harness the power of these tools.”
Increasing demand for business-led, cloud-based application development is another major trend in this segment, ISG says. Companies are transforming traditional monolithic applications by incorporating them into cloud architectures, often using containerization and microservices, to increase scalability, resilience and agility.
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The report also explores other ADM trends in the U.S., including the rise of data-driven application management and the growing need for customized software testing to support shorter release cycles.
For more insights into the ADM challenges U.S. enterprises face, including how to pursue software innovation and cost containment simultaneously, along with advice on how to address them, see the ISG Provider Lens™ Focal Points briefing here.
The 2023 ISG Provider Lens™ Next-Gen ADM Services report for the U.S. evaluates the capabilities of 47 providers across five quadrants: Agile Application Development Outsourcing, Agile Application Development Projects, Application Managed Services, Application Quality Assurance and Continuous Testing Specialists.
The report names Accenture, Capgemini, Cognizant, Deloitte, HCLTech, Infosys, TCS and Wipro as Leaders in three quadrants each. It names Tech Mahindra and UST as Leaders in two quadrants each. Apexon, Birlasoft, Cigniti, Cybage, DXC Technology, Encora, Eviden, Hexaware, HTC Global, LTIMindtree, Qualitest and Zensar are named as Leaders in one quadrant each.
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