STOCK TITAN

GenAI Accelerates App Development in Brazil

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

Information Services Group (ISG) reports widespread adoption of Generative AI (GenAI) in Brazil's application development sector in 2024. Companies are leveraging GenAI to enhance software development productivity, quality, and delivery time without increasing budgets. While GenAI adds new tasks and may not reduce total development costs, it's already showing productivity gains.

The technology enables voice-interface requirements gathering, code generation through prompts, and automated testing. However, human expertise remains essential for defining software functionality, architecture, and business rules. Brazilian companies are carefully evaluating GenAI implementation through proof of concept projects, considering privacy, security, compliance, and legal responsibilities.

Information Services Group (ISG) riporta un'ampia adozione dell'Intelligenza Artificiale Generativa (GenAI) nel settore dello sviluppo di applicazioni in Brasile nel 2024. Le aziende stanno sfruttando GenAI per migliorare la produttività, la qualità e i tempi di consegna dello sviluppo software senza aumentare i budget. Anche se GenAI introduce nuove attività e potrebbe non ridurre i costi totali di sviluppo, sta già mostrando guadagni di produttività.

Questa tecnologia consente la raccolta dei requisiti tramite interfaccia vocale, la generazione di codice attraverso comandi e il collaudo automatizzato. Tuttavia, l'expertise umana rimane fondamentale per definire la funzionalità del software, l'architettura e le regole aziendali. Le aziende brasiliane stanno valutando attentamente l'implementazione di GenAI attraverso progetti di prova, considerando privacy, sicurezza, conformità e responsabilità legali.

Information Services Group (ISG) informa sobre la adopción generalizada de la Inteligencia Artificial Generativa (GenAI) en el sector de desarrollo de aplicaciones en Brasil en 2024. Las empresas están aprovechando GenAI para mejorar la productividad, la calidad y el tiempo de entrega del desarrollo de software sin aumentar los presupuestos. Aunque GenAI añade nuevas tareas y puede no reducir los costos totales de desarrollo, ya está mostrando incrementos en la productividad.

La tecnología permite la recopilación de requisitos a través de interfaces de voz, la generación de código mediante instrucciones, y pruebas automatizadas. Sin embargo, la experiencia humana sigue siendo esencial para definir la funcionalidad del software, la arquitectura y las reglas de negocio. Las empresas brasileñas están evaluando cuidadosamente la implementación de GenAI a través de proyectos piloto, considerando la privacidad, la seguridad, el cumplimiento y las responsabilidades legales.

정보 서비스 그룹(ISG)는 2024년 브라질 애플리케이션 개발 부문에서 생성적 인공지능(GenAI)의 광범위한 채택을 보고합니다. 기업들은 예산을 증가시키지 않으면서 GenAI를 활용하여 소프트웨어 개발의 생산성, 품질 및 납기 시간을 향상시키고 있습니다. GenAI는 새로운 작업을 추가하고 전체 개발 비용을 줄이지 않을 수 있지만, 이미 생산성 향상을 보여주고 있습니다.

이 기술은 음성 인터페이스를 통한 요구사항 수집, 프롬프트를 통한 코드 생성, 자동화된 테스트를 가능하게 합니다. 하지만 소프트웨어 기능, 아키텍처 및 비즈니스 규칙을 정의하는 데에는 인간의 전문 지식이 여전히 필수적입니다. 브라질의 기업들은 개인 정보 보호, 보안, 규정 준수 및 법적 책임을 고려하여 개념 증명 프로젝트를 통해 GenAI 구현을 신중히 평가하고 있습니다.

Information Services Group (ISG) fait état d'une adoption généralisée de l'intelligence artificielle générative (GenAI) dans le secteur du développement d'applications au Brésil en 2024. Les entreprises utilisent GenAI pour améliorer la productivité, la qualité et les délais de livraison du développement logiciel sans augmenter les budgets. Bien que GenAI ajoute de nouvelles tâches et puisse ne pas réduire les coûts de développement totaux, elle montre déjà des gains de productivité.

Cette technologie permet de recueillir des exigences grâce à des interfaces vocales, de générer du code par le biais de commandes et d'effectuer des tests automatisés. Cependant, l'expertise humaine demeure essentielle pour définir la fonctionnalité logicielle, l'architecture et les règles commerciales. Les entreprises brésiliennes évaluent soigneusement la mise en œuvre de GenAI à travers des projets pilotes, tenant compte de la confidentialité, de la sécurité, de la conformité et des responsabilités légales.

Information Services Group (ISG) berichtet über die weitverbreitete Einführung von Generativer KI (GenAI) im Sektor der Anwendungsentwicklung in Brasilien im Jahr 2024. Unternehmen nutzen GenAI, um die Produktivität, Qualität und Lieferzeiten der Softwareentwicklung zu steigern, ohne die Budgets zu erhöhen. Obwohl GenAI neue Aufgaben hinzufügt und möglicherweise die Gesamtkosten der Entwicklung nicht senkt, zeigt sie bereits Produktivitätsgewinne.

Die Technologie ermöglicht die Anforderungserhebung über Sprachschnittstellen, die Code-Generierung durch Eingabeaufforderungen und automatisierte Tests. Menschliche Expertise bleibt jedoch entscheidend, um die Softwarefunktionalität, Architektur und Geschäftsvorschriften zu definieren. Brasilianische Unternehmen prüfen die Implementierung von GenAI sorgfältig durch Machbarkeitsprojekte und berücksichtigen dabei Datenschutz, Sicherheit, Compliance und rechtliche Verantwortlichkeiten.

Positive
  • GenAI implementation showing productivity gains in software development
  • Companies expanding application managed services beyond maintenance to modernization
  • Technology enabling faster code refactoring and enhanced agility
Negative
  • GenAI implementation not reducing total development costs
  • Additional tasks and processes required for GenAI implementation
  • Long decision-making processes and proof of concept requirements adding complexity to adoption

Insights

The broad adoption of GenAI in Brazil's application development sector marks a significant shift in the $151.3M market cap ISG's business model and service offerings. The technology's integration into core application services represents both an opportunity and challenge for ISG's advisory services.

The report highlights a important market transition where Brazilian enterprises are prioritizing GenAI investments for improved development efficiency, potentially driving increased demand for ISG's research and advisory services. This could positively impact ISG's revenue streams as companies seek guidance on GenAI implementation, vendor selection and best practices.

The identification of 60 service providers across five quadrants, with multiple leaders like Capgemini and Wipro, demonstrates ISG's comprehensive market coverage and strengthens their position as a key advisory firm in the Brazilian tech sector. The emphasis on proof of concept requirements and compliance considerations suggests growing opportunities for ISG's consulting services.

Companies broadly adopting GenAI tools and services to improve software development productivity, quality, testing and delivery time, ISG Provider Lens™ report says

SÃO PAULO--(BUSINESS WIRE)-- Enterprises in Brazil have begun broadly adopting generative AI (GenAI) for application development and maintenance in 2024, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Next-Gen ADM Services report for Brazil finds that GenAI has become a core part of application services, pushing Agile methodology into the background. Organizations in Brazil are willing to invest in new technologies for higher quality and efficiency, the report says. They are using GenAI to help IT departments deliver better applications and business functions in less time without increasing budgets. While it adds new tasks and may not cut the total cost of development, GenAI is already delivering gains in productivity.

“Companies in Brazil are constantly working to reduce time to market on the applications they create,” said Shafqat Azim, ISG partner and Americas lead, Digital Transformation. “They are beginning to recognize GenAI’s potential to help them deliver better code more quickly.”

Advanced GenAI features that have emerged this year could allow enterprises to significantly reshape development processes, ISG says. For example, end users can use a voice interface to tell a GenAI tool what a proposed application should do, then have the tool document the requirements and ask more questions to complete the software’s specifications. In the coding phase, a programmer can write prompts and have GenAI write the code. GenAI can also inspect code and perform functional testing.

However, GenAI does not replace humans in defining what software does for users or how it is created, including program flow, logic, architecture and business rules, the report says. GenAI requires human review to check for hallucinations and deviations from best practices. As a result, the technology does not pose a threat to project managers, business analysts, developers and other professionals with high-level expertise.

Most Brazilian companies that have embarked on GenAI projects with service providers demand a proof of concept to understand the business value and go through long decision-making processes, ISG says. They consider how to comply with restrictions on the use of GenAI, which encompass privacy, security, compliance, IP, legal responsibility and other issues.

With the emergence of GenAI, more enterprises in Brazil are expanding their use of application managed services beyond cost-effective maintenance to application modernization, ISG says. GenAI can accelerate the process of refactoring legacy code to take advantage of the latest technologies and enhance agility.

“Brazilian companies planning application development projects seek providers that can deliver the power of GenAI and data analytics,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “To meet their demands, leading providers in Brazil are investing in these types of expertise.”

The report also examines other next-generation ADM trends in Brazil, including growing demand for automated QA services and the emergence of proprietary GenAI solutions for customized, end-to-end test automation.

For more insights into the top ADM challenges facing Brazilian enterprises, and ISG’s advice for leveraging GenAI to improve speed and agility, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Next-Gen ADM Services report for Brazil evaluates the capabilities of 60 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 Capgemini, GFT and Wipro as Leaders in three quadrants each. It names Accenture, Compass UOL, DXC Technology, Softtek and Stefanini as Leaders in two quadrants each. Base2, BRQ, CI&T, e-Core, FCamara, Globant, iLab (SVLabs), Inmetrics, Keeggo, NTT DATA, Objective Group, Prime Control, Sempre IT, TCS, Tech Mahindra, ThoughtWorks, TIVIT, T-Systems, Vericode and Yaman as Leaders in one quadrant each.

In addition, Inmetrics, NAVA, Spassu, TCS and Vericode are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

Customized versions of the report are available from Prime Control, Spassu, TQI and Vericode.

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among ADM Services providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Next-Gen ADM Services report for Brazil is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Press Contacts:



Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Thábata Mondoni, Mondoni Press for ISG

Mobile: +55 11 98671 5652

thabata@mondonipress.com.br

Source: Information Services Group, Inc.

FAQ

How is GenAI impacting application development in Brazil in 2024?

According to ISG (III), GenAI is being broadly adopted in Brazil for application development, improving productivity, quality, and delivery time without increasing budgets, though it may not reduce total development costs.

What are the limitations of GenAI in application development according to ISG (III)?

GenAI cannot replace human expertise in defining software functionality, program flow, logic, architecture, and business rules. It requires human review to check for hallucinations and ensure adherence to best practices.

What challenges are Brazilian companies facing with GenAI implementation in 2024?

Companies face challenges including lengthy decision-making processes, proof of concept requirements, and compliance with restrictions on privacy, security, IP, and legal responsibilities.

Information Services Group, Inc.

NASDAQ:III

III Rankings

III Latest News

III Stock Data

171.75M
35.04M
28.63%
60.93%
0.26%
Information Technology Services
Services-management Consulting Services
Link
United States of America
STAMFORD