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GenAI Drives Application Development Innovation, Market Growth in Europe

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The 2024 ISG Provider Lens™ Next-Generation ADM Services report for Europe highlights the transformative impact of Generative AI (GenAI) on the European application development and maintenance (ADM) market. Key findings include:

1. GenAI is revolutionizing ADM by automating complex tasks, reducing development cycles, and improving accuracy.

2. There's a growing demand for flexible, tailored, and scalable ADM solutions compliant with European regulations like GDPR.

3. Adoption of GenAI requires substantial initial investments and poses challenges in data privacy and ethical AI use.

4. Agile and DevOps approaches are widely adopted for improved time to market and operational efficiency.

5. Large providers dominate the next-gen ADM space, while smaller providers focus on niche markets and specialized services.

The report evaluates 38 providers across four quadrants, naming several companies as Leaders and Rising Stars in various categories.

Il rapporto ISG Provider Lens™ Next-Generation ADM Services 2024 per l'Europa evidenzia l'impatto trasformativo dell'Intelligenza Artificiale Generativa (GenAI) sul mercato europeo dello sviluppo e della manutenzione delle applicazioni (ADM). I principali risultati includono:

1. La GenAI sta rivoluzionando l'ADM automatizzando compiti complessi, riducendo i cicli di sviluppo e migliorando l'accuratezza.

2. C'è una crescente domanda di soluzioni ADM flessibili, personalizzate e scalabili, conformi alle normative europee come il GDPR.

3. L'adozione della GenAI richiede investimenti iniziali sostanziali e presenta sfide relative alla privacy dei dati e all'uso etico dell'IA.

4. Gli approcci Agile e DevOps sono ampiamente adottati per migliorare il time to market e l'efficienza operativa.

5. I grandi fornitori dominano lo spazio ADM di nuova generazione, mentre i fornitori più piccoli si concentrano su mercati di nicchia e servizi specializzati.

Il rapporto valuta 38 fornitori in quattro quadranti, nominando diverse aziende come Leader e Stelle Nascenti in varie categorie.

El informe ISG Provider Lens™ Next-Generation ADM Services 2024 para Europa destaca el impacto transformador de la Inteligencia Artificial Generativa (GenAI) en el mercado europeo de desarrollo y mantenimiento de aplicaciones (ADM). Los hallazgos clave incluyen:

1. La GenAI está revolucionando el ADM al automatizar tareas complejas, reducir los ciclos de desarrollo y mejorar la precisión.

2. Hay una creciente demanda de soluciones ADM flexibles, personalizadas y escalables que cumplan con las regulaciones europeas como el GDPR.

3. La adopción de la GenAI requiere inversiones iniciales sustanciales y plantea desafíos en privacidad de datos y uso ético de la IA.

4. Los enfoques Agile y DevOps son ampliamente adoptados para mejorar el tiempo de comercialización y la eficiencia operativa.

5. Los grandes proveedores dominan el espacio de ADM de nueva generación, mientras que los proveedores más pequeños se enfocan en mercados de nicho y servicios especializados.

El informe evalúa a 38 proveedores en cuatro cuadrantes, nombrando a varias empresas como Líderes y Estrellas Emergentes en varias categorías.

2024년 ISG Provider Lens™ 차세대 ADM 서비스 보고서는 유럽의 애플리케이션 개발 및 유지 관리(ADM) 시장에 대한 생성형 인공지능(GenAI)의 변혁적 영향을 강조합니다. 주요 발견 사항은 다음과 같습니다:

1. GenAI는 복잡한 작업을 자동화하고 개발 주기를 단축하며 정확성을 향상시키면서 ADM을 혁신하고 있습니다.

2. GDPR과 같은 유럽 규정을 준수하는 유연하고 맞춤화된 확장 가능한 ADM 솔루션에 대한 수요가 증가하고 있습니다.

3. GenAI의 채택은 상당한 초기 투자를 요구하며 데이터 프라이버시 및 윤리적 AI 사용에 도전 과제를 제기합니다.

4. Agile 및 DevOps 접근 방식은 시장 출시 시간과 운영 효율성을 개선하기 위해 널리 채택되고 있습니다.

5. 대형 공급업체가 차세대 ADM 공간을 지배하고 있으며, 소형 공급업체는 틈새 시장과 전문 서비스에 집중하고 있습니다.

이 보고서는 네 개의 사분면에서 38개 공급업체를 평가하며, 여러 기업을 다양한 카테고리에서 리더 및 신흥 스타로 명명합니다.

Le rapport ISG Provider Lens™ Next-Generation ADM Services 2024 pour l'Europe met en évidence l'impact transformateur de l'Intelligence Artificielle Générative (GenAI) sur le marché européen du développement et de la maintenance des applications (ADM). Les principales conclusions incluent :

1. La GenAI révolutionne l'ADM en automatisant des tâches complexes, en réduisant les cycles de développement et en améliorant la précision.

2. Il y a une demande croissante pour des solutions ADM flexibles, personnalisées et évolutives, conformes aux réglementations européennes telles que le RGPD.

3. L'adoption de la GenAI nécessite des investissements initiaux substantiels et pose des défis en matière de confidentialité des données et d'utilisation éthique de l'IA.

4. Les approches Agile et DevOps sont largement adoptées pour améliorer le délai de mise sur le marché et l'efficacité opérationnelle.

5. De grands fournisseurs dominent l'espace ADM de nouvelle génération, tandis que de plus petits fournisseurs se concentrent sur des marchés de niche et des services spécialisés.

Le rapport évalue 38 fournisseurs dans quatre quadrants, désignant plusieurs entreprises comme leaders et étoiles montantes dans diverses catégories.

Der ISG Provider Lens™ Next-Generation ADM Services Bericht 2024 für Europa hebt die transformative Wirkung der Generativen KI (GenAI) auf den europäischen Markt für Anwendungsentwicklung und -wartung (ADM) hervor. Zu den wichtigsten Erkenntnissen gehören:

1. GenAI revolutioniert ADM, indem sie komplexe Aufgaben automatisiert, Entwicklungszyklen verkürzt und die Genauigkeit verbessert.

2. Es gibt eine wachsende Nachfrage nach flexiblen, maßgeschneiderten und skalierbaren ADM-Lösungen, die den europäischen Vorschriften wie der DSGVO entsprechen.

3. Die Einführung von GenAI erfordert erhebliche Anfangsinvestitionen und birgt Herausforderungen im Bereich Datenschutz und ethische KI-Nutzung.

4. Agile und DevOps-Ansätze werden weit verbreitet zur Verbesserung der Markteinführungszeit und operativen Effizienz angenommen.

5. Große Anbieter dominieren den Bereich Next-Gen ADM, während kleinere Anbieter sich auf Nischenmärkte und spezialisierte Dienstleistungen konzentrieren.

Der Bericht bewertet 38 Anbieter in vier Quadranten und benennt mehrere Unternehmen als Führer und aufstrebende Sterne in verschiedenen Kategorien.

Positive
  • GenAI is driving innovation in ADM processes, potentially leading to greater efficiency
  • Adoption of Agile and DevOps approaches is improving time to market and operational efficiency
  • ISG named several companies as Leaders in the Next-Generation ADM Services report, indicating strong market positioning
Negative
  • GenAI adoption requires substantial initial investments in infrastructure and training
  • Challenges in ensuring data privacy and ethical use of AI with GenAI implementation
  • Difficulty in integrating advanced tools with existing legacy systems without operational disruption
  • Scarcity and high cost of personnel with key GenAI skills

Insights

GenAI is revolutionizing application development in Europe, automating complex tasks and reducing development cycles. This shift addresses the growing demand for flexible, tailored ADM solutions compliant with regulations like GDPR. Key benefits include:

  • Automated code generation and bug detection
  • Improved performance optimization
  • Faster development cycles and increased accuracy

However, challenges remain:

  • Substantial initial investments in infrastructure and training
  • Ensuring data privacy and ethical AI use
  • Integration with legacy systems
  • Scarcity of skilled GenAI personnel

The adoption of Agile and DevOps approaches is widespread, enabling faster release cycles and better alignment between development and business goals. Large providers dominate the market, while smaller ones focus on niche markets and specialized services.

The European next-generation ADM market is experiencing significant transformation, driven by GenAI advancements, changing client requirements and the need for legacy modernization. This shift presents both opportunities and challenges for market players:

  • Market leaders: Accenture, Capgemini, Cognizant, HCLTech, IBM and Infosys
  • Rising stars: T-Systems, Deloitte and DXC Technologies
  • Customer experience leader: Persistent Systems

The market is seeing increased demand for AI-enabled ADM services, with a focus on Agile development, managed services and quality assurance. For Information Services Group (ISG), this trend could lead to increased demand for their research and advisory services as companies navigate the complex ADM landscape.

ISG Provider Lens™ report says European enterprises are turning to new technologies for tailored, scalable, compliant ADM solutions

LONDON--(BUSINESS WIRE)-- Generative AI (GenAI) advancements, changing client requirements, and the need for legacy modernization and regulatory compliance have transformed the European next-generation ADM market over the past 18 months, 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-Generation ADM Services report for Europe finds GenAI has been revolutionizing the application development landscape by automating complex tasks such as code generation, bug detection and performance optimization, significantly reducing development cycles and improving accuracy. These advances help meet the growing demand for flexible, tailored and scalable ADM solutions that comply with stringent European regulations such as GDPR.

“The continuing trend towards GenAI adoption is driving persistent innovation in development processes,” said Dr. Matthias Paletta, ISG research director and technology modernization solution lead. “The use of GenAI is key to future differentiation and leadership in ADM.”

The adoption of GenAI requires substantial initial investments in infrastructure and training, and challenges enterprises to ensure data privacy and ethical use of AI. Furthermore, integrating such advanced tools with existing legacy systems without disrupting ongoing operations remains a significant hurdle, and educated personnel with key GenAI skills remain sparse and expensive.

GenAI is expected to drive innovation by enabling the creation of advanced predictive models and enhancing AI-driven application capabilities. This technological advancement will foster greater efficiency and innovation, though its exact impact on the next-generation ADM landscape is impossible to predict.

“GenAI can transform legacy code into modern, more efficient, methods with little or no human intervention,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Organizations are using GenAI to help automate the transformation of outdated systems.”

Clients seeking to improve time to market and operational efficiency have widely adopted Agile and DevOps approaches for their ability to enable faster release cycles, enhanced quality and better alignment between development and business goals, the report says.

The larger providers of technology resources are dominating the next-gen ADM space, with global reach and local expertise. Smaller ADM providers have more limited geographical reach, financial resources and technology partnerships, but can be more agile and competitive by focusing on niche markets and offering specialized services and personalized client engagements.

For further insights into the trends and challenges impacting the next-generation ADM market in Europe, including skills shortages, evolving client requirements, security concerns and cost management pressures, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Next-Generation ADM Services report for Europe evaluates the capabilities of 38 providers across four quadrants: Agile Application Development Outsourcing, Application Managed Services, Application Quality Assurance, and AI-enabled Application Development and Maintenance (AI-ADM).

The report names Accenture, Capgemini, Cognizant, HCLTech, IBM and Infosys as Leaders in all four quadrants. DXC Technology and Wipro are leaders in three quadrants each, and Deloitte and TCS are Leaders in one quadrant each.

In addition, T-Systems is named a Rising Star — which ISG defines as a company with a “promising portfolio” and “high future potential”— in two quadrants. Deloitte and DXC Technologies are named Rising Stars in one quadrant each.

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among next-generation ADM service 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.

A customized version of the report is available from Capgemini.

The 2024 ISG Provider Lens™ Next-Generation ADM Services report for Europe 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:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

Source: Information Services Group, Inc.

FAQ

How is Generative AI impacting the European ADM market?

Generative AI is revolutionizing the European ADM market by automating complex tasks like code generation and bug detection, reducing development cycles, and improving accuracy. It's driving innovation and efficiency in application development processes.

What challenges do companies face when adopting GenAI for ADM services?

Companies face challenges such as substantial initial investments in infrastructure and training, ensuring data privacy and ethical AI use, integrating advanced tools with legacy systems without disrupting operations, and the scarcity and high cost of personnel with GenAI skills.

Who are the leaders in the European Next-Generation ADM Services market according to ISG (III)?

According to the ISG Provider Lens™ report, leaders in all four quadrants include Accenture, Capgemini, Cognizant, HCLTech, IBM, and Infosys. DXC Technology and Wipro are leaders in three quadrants, while Deloitte and TCS are leaders in one quadrant each.

What approaches are European enterprises adopting to improve ADM efficiency?

European enterprises are widely adopting Agile and DevOps approaches to improve time to market and operational efficiency. These methodologies enable faster release cycles, enhanced quality, and better alignment between development and business goals.

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