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German Industries Forge Ahead to Software-Centric Future
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Information Services Group (III) reveals in its latest report that German enterprises are increasingly prioritizing next-generation application development due to ongoing challenges such as the COVID-19 pandemic and economic crises. Key findings indicate that cloud computing is driving software adoption, and companies are embracing AI and machine learning to consolidate data and enhance insights. The report names market leaders like Accenture and Cognizant in various quadrants, emphasizing the importance of cybersecurity amidst rising threats.
Positive
Increased focus on application development to enhance business value.
Growing adoption of AI and machine learning in application processes.
Market leaders identified, indicating strong competition and service quality.
Negative
Supply chain disruptions and chip shortages continue to pose challenges.
Enterprises in automotive, finance and other sectors are adopting next-generation application development to stay competitive and growing, ISG Provider Lens™ report says
FRANKFURT, Germany--(BUSINESS WIRE)--
Enterprises in Germany, facing the continuing effects of the COVID-19 pandemic and other crises, are preparing for a future in which software is increasingly vital to business success, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2022 ISG Provider Lens™ Next-Gen ADM Servicesreport for Germany finds that supply chain disruptions, chip shortages, high energy costs and other challenges have forced companies in most large industries in Germany, including automotive, finance and logistics, to recognize the heightened importance of software. Future growth will depend on having secure software that meets new and redefined application development requirements, ISG says.
“Companies in Germany are investing in application development to make their products, services and organizations more valuable,” said Anna Medkouri, ISG partner in DACH. “In many cases, outsourcing provides the hard-to-find software skills and experience companies need to build large application landscapes.”
The growing use of cloud computing is a major reason companies have adopted new applications and managed services in Germany, where technology trends take hold more slowly than in other markets, such as the U.S., the report says. As German organizations recognize they do not need on-premises infrastructure for all operations and have embraced new, cloud-based software, the roles of top executives have also changed: CIOs now typically manage IT, while CTOs take over strategy development.
For many enterprises in Germany, data consolidation is another core objective of large application development projects and a key offering from service providers, ISG says. Companies are using AI, machine learning and robotic process automation to bring together previously siloed or inaccessible customer data to generate business insights.
“AI is becoming a standard part of application development,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “It is helping companies organize and speed up the development process, all the way through testing applications and predicting infrastructure growth.”
Cybersecurity concerns play an increasing role in the application strategies of companies in Germany, partly as a result of the dual crises of the pandemic and the war in Ukraine, the report says. The number of large-scale cyberattacks has grown in recent years, as many enterprises are integrating IoT devices, and the rise of remote work has increased the need for connectivity through public networks. New technologies such as quantum computing are now emerging to help ensure application security.
The report also examines other application development and management trends in Germany, including a growing focus on sustainability by service providers — not yet shared by many enterprises — and the increasing use of nearshore and offshore delivery centers.
The 2022 ISG Provider Lens™ Next-Gen ADM Services report for Germany evaluates the capabilities of 52 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, HCL and Wipro as Leaders in three quadrants each. It names Atos, Infosys, Materna and msg Systems as Leaders in two quadrants each. Arvato Systems, Datagroup, DXC Technology, Tech Mahindra and Zeiss Digital Innovation are named as Leaders in one quadrant each.
In addition, DXC Technology is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Hexaware, LTI and Mindtree are named as Rising Stars in one quadrant each.
The 2022 ISG Provider Lens™ Next-Gen ADM Services report for Germany 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, 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.
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 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 automation, 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 1,300 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.
What does the ISG report reveal about application development trends in Germany?
The ISG report highlights that German enterprises are prioritizing next-generation application development to address challenges like supply chain disruptions and the COVID-19 pandemic.
Which companies are identified as leaders in the ISG Provider Lens report for application development?
Leaders include Accenture, Capgemini, Cognizant, HCL, and Wipro in various quadrants of the ISG report.
How are AI and machine learning influencing application development in Germany?
AI and machine learning are used to consolidate data and enhance business insights within application development projects in Germany.
What cybersecurity concerns are mentioned in the ISG report?
The report points to rising cybersecurity threats due to increased IoT integration and remote work, impacting application strategies for German enterprises.
What economic challenges are affecting German companies according to the ISG report?
Challenges include ongoing supply chain disruptions, chip shortages, and high energy costs that are influencing application development priorities.
