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Next-Gen ADM Marches Ahead in U.S. Despite High Hurdles
Rhea-AI Impact
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Rhea-AI Sentiment
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Rhea-AI Summary
According to a new ISG Provider Lens report, U.S. enterprises continue to adopt modern software development practices, despite pandemic-induced challenges and economic uncertainties. The report highlights that Agile, DevOps, and DevSecOps methodologies face slower adoption due to inflation and recruitment freezes. Companies are investing in cloud-native solutions and automation to enhance application development. Security remains a top priority, with firms integrating testing into all phases of development. The report evaluates 40 service providers, naming leaders in multiple quadrants.
Positive
Enterprises are adopting modern approaches to Application Development and Maintenance (ADM) despite economic challenges.
Strong momentum exists in transitioning to cloud-native and digital-first ADM solutions enabled by automation and AI.
Security integration into ADM processes is prioritized, addressing data privacy concerns.
Negative
Adoption of Agile, DevOps, and DevSecOps methodologies is hampered by inflation and recession fears.
Economic uncertainties may delay ADM transformation by 12 to 18 months or longer.
U.S. enterprises steadily adopt modern approaches to software even as pandemic, economic jitters and changes in work slow progress, ISG Provider Lens™ report says
STAMFORD, Conn.--(BUSINESS WIRE)--
Application development and maintenance (ADM) continues to evolve at enterprises and service providers in the U.S. despite several factors slowing digital transformation initiatives, 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 Services report for the U.S. finds that the COVID-19 pandemic, the Great Resignation and rapid changes in workstyles and workplaces over the past few years have hampered adoption of Agile, DevOps and DevSecOps methodologies. In the U.S., inflation and fears of recession have caused companies to dial back investments, freeze hiring and lay off workers. However, enterprises are still working to better align IT and business goals more closely through advances in ADM, ISG says.
“Next-generation development approaches result in solutions that deliver better customer and user experiences,” said Shafqat Azim, partner, ISG Digital Strategy and Solutions. “Traditional IT-powered business tools seem complex and opaque to many users, especially young digital natives. They want streamlined, Amazon-like experiences.”
Both enterprises and service providers are moving toward more cloud-native, digital-first ADM solutions enabled by automation and AI, the report says. Economic jitters in the U.S. mean ADM transformation may take an extra 12 to 18 months — or longer — to come to fruition, the report says. However, there is strong momentum behind the far-reaching changes occurring in the application space.
“Companies that have seen the benefits of agile development are now bringing agile thinking to application management and even business operations,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.
Among the report’s findings is that security remains a critical concern for service providers and their enterprise customers, to the point where they are working to build security into every phase of ADM. Protecting data privacy is also a growing priority, driven by the increasing complexity of regulations in the U.S. and beyond.
Companies are also integrating testing into every phase of development, adopting a “zero test” model that uses continuous, highly automated, end-to-end testing supported by AI and machine learning, ISG says. In addition, low-code/no-code development platforms have moved beyond the experimentation stage, with many enterprises deploying applications built by “citizen developers,” while service providers help to ensure those applications meet security, interoperability and manageability requirements.
The report also examines several other major ADM trends in the U.S. and beyond, including the continuing rise of open ecosystems, the growing adoption of multi-cloud strategies and companies’ ongoing efforts to slash application management and maintenance costs through automation.
For more insights into the application challenges U.S. enterprises face, and advice on how to approach them, see the ISG Provider Lens™ Focal Points briefing here.
The 2022 ISG Provider Lens™ Next-Gen ADM Services report for the U.S. evaluates the capabilities of 40 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, Infosys, TCS and Wipro as Leaders in three quadrants each. It names Birlasoft, Hexaware and UST as Leaders in two quadrants each. Cigniti, Coforge, DXC Technology, LTI, Mindtree, Persistent Systems, Tech Mahindra and Zensar are named as Leaders in one quadrant each.
The 2022 ISG Provider Lens™ Next-gen ADM Services report for the U.S. 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.
Julianna Sheridan, Matter Communications for ISG +1 978-518-4520
isg@matternow.com
Source: Information Services Group, Inc.
FAQ
What does the ISG Provider Lens report say about U.S. software adoption?
The report indicates that U.S. enterprises are steadily adopting modern software practices, despite challenges posed by the pandemic and economic factors.
How are economic uncertainties affecting ADM practices in the U.S.?
Economic uncertainties, including inflation, are causing companies to slow down investments and may delay ADM transformation by 12 to 18 months.
What security concerns are highlighted in the ISG report for ADM?
The report emphasizes that security is a critical concern, leading companies to integrate security into every ADM phase and prioritize data privacy.
Who are the leaders named in the ISG Provider Lens ADM report?
The report names Accenture, Capgemini, Cognizant, HCL, Infosys, TCS, and Wipro as leaders in multiple quadrants of ADM services.
What are the challenges U.S. enterprises face in implementing Agile and DevOps?
Challenges include slower adoption due to the pandemic, economic jitters, and changes in workstyles, which have hindered agile methodologies.
