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U.S. Firms Embrace AI, Cloud for Application Development

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The 2024 ISG Provider Lens™ Next-Gen ADM Services report for the U.S. highlights the growing adoption of AI and cloud technologies in application development and management (ADM) strategies among U.S. enterprises. Key findings include:

1. AI-driven ADM services are transforming IT operations, improving efficiency, software quality, and reducing downtime.
2. Companies are exploring generative AI (GenAI) for automating test creation and scenario simulation in quality assurance.
3. There's an increasing trend towards provider engagements covering both applications and underlying IT infrastructure.
4. Cloud-native development is gaining popularity for its scalability and flexibility.
5. Integration of site reliability engineering (SRE) with AI for IT operations (AIOps) is enhancing system performance insights.

The report evaluates 51 providers across six quadrants, naming several as Leaders in multiple categories.

Il report 2024 ISG Provider Lens™ Next-Gen ADM Services per gli Stati Uniti evidenzia l'adozione crescente di tecnologie AI e cloud nelle strategie di sviluppo e gestione delle applicazioni (ADM) tra le imprese statunitensi. Tra i risultati chiave si evidenziano:

1. I servizi ADM guidati dall'AI stanno trasformando le operazioni IT, migliorando l'efficienza, la qualità del software e riducendo i tempi di inattività.
2. Le aziende stanno esplorando l'AI generativa (GenAI) per automatizzare la creazione di test e la simulazione di scenari nella qualità del software.
3. C'è una crescente tendenza verso impegni con i fornitori che coprono sia le applicazioni che l'infrastruttura IT sottostante.
4. Lo sviluppo cloud-native sta guadagnando popolarità per la sua scalabilità e flessibilità.
5. L'integrazione dell'ingegneria di affidabilità del sito (SRE) con l'AI per le operazioni IT (AIOps) sta migliorando la visibilità delle prestazioni del sistema.

Il report valuta 51 fornitori in sei quadranti, nominando diversi come Leader in più categorie.

El informe 2024 ISG Provider Lens™ Next-Gen ADM Services para EE.UU. destaca la creciente adopción de tecnologías de IA y en la nube en las estrategias de desarrollo y gestión de aplicaciones (ADM) entre las empresas estadounidenses. Los hallazgos clave incluyen:

1. Los servicios de ADM impulsados por la IA están transformando las operaciones de TI, mejorando la eficiencia, la calidad del software y reduciendo el tiempo de inactividad.
2. Las empresas están explorando IA generativa (GenAI) para automatizar la creación de pruebas y la simulación de escenarios en aseguramiento de calidad.
3. Hay una creciente tendencia hacia compromisos con proveedores que cubren tanto aplicaciones como la infraestructura de TI subyacente.
4. El desarrollo nativo en la nube está ganando popularidad por su escalabilidad y flexibilidad.
5. La integración de la ingeniería de confiabilidad del sitio (SRE) con la IA para operaciones de TI (AIOps) está mejorando la visibilidad del rendimiento del sistema.

El informe evalúa a 51 proveedores en seis cuadrantes, nombrando a varios como Líderes en múltiples categorías.

2024 ISG Provider Lens™ Next-Gen ADM Services 보고서는 미국 기업들 사이에서 애플리케이션 개발 및 관리(ADM) 전략에서 AI 및 클라우드 기술의 도입이 증가하고 있음을 강조합니다. 주요 발견 사항은 다음과 같습니다:

1. AI 기반 ADM 서비스가 IT 운영을 변화시키고, 효율성, 소프트웨어 품질을 개선하며, 가동 중지 시간을 줄이고 있습니다.
2. 기업들은 품질 보증에서 테스트 생성 및 시나리오 시뮬레이션을 자동화하기 위해 생성적 AI(GenAI)를 탐색하고 있습니다.
3. 애플리케이션과 기본 IT 인프라를 모두 포함하는 공급업체 참여가 증가하는 추세입니다.
4. 클라우드 네이티브 개발이 확장성과 유연성 덕분에 인기를 얻고 있습니다.
5. AI를 IT 운영(AIOps)과 통합하는 사이트 신뢰성 엔지니어링(SRE)이 시스템 성능 통찰을 향상시키고 있습니다.

보고서는 51개의 공급업체를 여섯 개의 사분면에서 평가하며, 여러 분야에서 여러 공급업체를 리더로 지명하고 있습니다.

Le rapport 2024 ISG Provider Lens™ Next-Gen ADM Services pour les États-Unis met en avant l'adoption croissante des technologies AI et cloud dans les stratégies de développement et de gestion des applications (ADM) parmi les entreprises américaines. Les principales conclusions incluent :

1. Les services ADM basés sur l'AI transforment les opérations informatiques, améliorent l'efficacité, la qualité des logiciels et réduisent les temps d'arrêt.
2. Les entreprises explorent l'AI générative (GenAI) pour automatiser la création de tests et la simulation de scénarios dans l'assurance qualité.
3. Une tendance croissante vers des engagements avec des fournisseurs couvrant à la fois les applications et l'infrastructure informatique sous-jacente émerge.
4. Le développement cloud-native gagne en popularité grâce à sa scalabilité et sa flexibilité.
5. L'intégration de l'ingénierie de fiabilité des sites (SRE) avec l'AI pour les opérations informatiques (AIOps) améliore les perspectives de performance des systèmes.

Le rapport évalue 51 fournisseurs dans six quadrants, en nommant plusieurs comme leaders dans plusieurs catégories.

Der 2024 ISG Provider Lens™ Next-Gen ADM Services Bericht für die USA hebt die wachsende Akzeptanz von KI- und Cloud-Technologien in den Strategien zur Anwendungsentwicklung und -verwaltung (ADM) bei US-Unternehmen hervor. Die wichtigsten Erkenntnisse umfassen:

1. KI-gesteuerte ADM-Dienste transformieren die IT-Betriebe, verbessern die Effizienz, die Softwarequalität und reduzieren Ausfallzeiten.
2. Unternehmen erforschen generative KI (GenAI), um die Testproduktion und Szenariosimulation in der Qualitätssicherung zu automatisieren.
3. Es gibt einen zunehmenden Trend zu Engagements mit Anbietern, die sowohl Anwendungen als auch die zugrunde liegende IT-Infrastruktur abdecken.
4. Cloud-native Entwicklung gewinnt an Beliebtheit aufgrund ihrer Skalierbarkeit und Flexibilität.
5. Die Integration von Site Reliability Engineering (SRE) mit KI für IT-Betrieb (AIOps) verbessert die Leistungseinblicke des Systems.

Der Bericht bewertet 51 Anbieter in sechs Quadranten und bezeichnet mehrere als Führer in mehreren Kategorien.

Positive
  • AI-driven ADM services improving efficiency, software quality, and reducing downtime
  • Potential of GenAI in automating test creation and scenario simulation for quality assurance
  • Increased adoption of cloud-native development for greater agility and scalability
  • Integration of SRE with AIOps providing comprehensive insights into system performance
  • Growing trend of provider engagements covering both applications and IT infrastructure, potentially reducing costs
Negative
  • Complexity in applying AI to specific use cases
  • Difficulty in determining GenAI's potential ROI

Insights

The shift towards AI and cloud-based application development marks a significant trend in the U.S. enterprise IT landscape. This move is driven by the need for cost optimization and operational efficiency. Key benefits include:

  • Increased developer productivity
  • Reduced time to market
  • Improved software quality
  • Proactive maintenance

The integration of GenAI in quality assurance is particularly noteworthy, potentially revolutionizing testing processes. However, its ROI remains uncertain, presenting a challenge for widespread adoption.

The trend towards cloud-native development, utilizing platforms like Kubernetes, microservices and DevOps practices, enhances scalability and flexibility. This allows enterprises to rapidly respond to market changes and customer needs.

The fusion of Site Reliability Engineering (SRE) with AI for IT Operations (AIOps) represents another significant shift, enabling preemptive issue resolution and ensuring uninterrupted service delivery.

These advancements position the ADM services market for substantial growth, with potential for increased efficiency and innovation in application development and management.

The ISG Provider Lens™ report highlights a robust and competitive landscape in the U.S. Next-Gen ADM Services market. Key observations include:

  • Market Leaders: Accenture, Capgemini, Cognizant, Deloitte, HCLTech, IBM, Infosys and TCS lead in multiple quadrants, indicating their strong market position and comprehensive service offerings.
  • Rising Stars: Companies like Quinnox, Hitachi Digital Services, Mphasis and TestingXperts show high future potential, suggesting a dynamic and evolving market.
  • Customer Experience: Persistent Systems' recognition as the global ISG CX Star Performer underscores the increasing importance of customer satisfaction in this sector.

The report evaluates 51 providers across six quadrants, reflecting the breadth and depth of the ADM services market. The focus on AI, cloud adoption and industry-specific solutions indicates a market trend towards more specialized and technologically advanced offerings.

For investors, this report suggests a growing and competitive market with opportunities in both established leaders and emerging players. The emphasis on AI and cloud services points to potential areas for future growth and investment in the ADM sector.

Companies adopt AI for efficiency and quality, study GenAI’s potential for automation and testing, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Growing AI and cloud adoption have shaped U.S. enterprises’ application development and management (ADM) strategies over the past year, 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 the U.S. finds that companies continue to focus on cost optimization, which has helped to drive up the use of AI throughout application lifecycles and inspire early implementations of generative AI (GenAI).

“AI-driven ADM services are transforming the operations of U.S. enterprise IT departments,” said Shafqat Azim, ISG partner and Americas lead, Digital Transformation. “Service providers have enabled clients to modernize ADM through AI, with major operational benefits.”

AI tools are automating ADM tasks, improving software quality and reducing downtime, the report says. Benefits can include higher efficiency, increased developer productivity and reduced time to market, along with proactive maintenance.

Quality assurance is a high priority for many U.S. enterprises, and GenAI has strong potential in this area. By automating test creation and scenario simulation, it can speed up testing and uncover issues that manual inspections might miss. While U.S. companies are exploring this potential, they also want to apply quality assurance to GenAI to ensure it will operate correctly and ethically, ISG says.

A growing number of U.S. enterprises seek provider engagements that cover both applications and underlying IT infrastructure, such as servers, networks and cloud services, the report says. These deals ensure applications are optimized for performance, scalability and security, while also reducing costs and streamlining vendor management.

Companies are also increasingly shifting development to major public cloud platforms to create more scalable, resilient and flexible applications, ISG says. Orchestration tools like Kubernetes, along with microservices architectures, containerization and DevOps practices, have helped make this migration possible.

“As market trends and customer needs change, cloud-native development lets enterprises quickly respond,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Greater agility is a key reason companies move application development to the cloud.”

The growing integration of site reliability engineering (SRE) with AI for IT operations (AIOps) practices has led to a significant shift in ADM operations, the report says. This approach uses machine learning and advanced analytics to sift through huge volumes of operational data, giving companies comprehensive insights into system performance. With it, SRE teams can pre-emptively discover and resolve potential issues and ensure uninterrupted service delivery.

The report also explores other ADM trends in the U.S., including providers’ increasing ability to address industry-specific requirements and the rise of Agile and DevOps practices in continuous testing services.

For more insights into enterprise ADM challenges in the U.S., including the complexity of applying AI to specific use cases and the difficulty of determining GenAI’s potential ROI, plus ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Next-Gen ADM Services report for the U.S. evaluates the capabilities of 51 providers across six quadrants: Agile Application Development Outsourcing, Agile Application Development Projects, Application Managed Services, Application Quality Assurance, Continuous Testing Specialists and AI-enabled Application Development and Maintenance (AI-ADM).

The report names Accenture, Capgemini, Cognizant, Deloitte, HCLTech, IBM, Infosys and TCS as Leaders in four quadrants each. It names LTIMindtree, Tech Mahindra and Wipro as Leaders in three quadrants each. Apexon, Hexaware and UST are named as Leaders in two quadrants each. Birlasoft, Cigniti, Coforge, DXC Technology, Eviden (Atos Group), HTC Global Services, Infinite Computer Systems, Persistent Systems and Qualitest are named as Leaders in one quadrant each.

In addition, Quinnox is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in three quadrants. Hitachi Digital Services is named as a Rising Star in two quadrants. Mphasis and TestingXperts are named as 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-gen 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.

Customized versions of the report are available from Apexon, Capgemini, Persistent Systems, Qualitest and QA Consultants.

The 2024 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, 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.

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Julianna Sheridan, Matter Communications for ISG

+1 978 518 4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What are the key trends in U.S. application development and management according to the ISG report?

The ISG report highlights AI and cloud adoption, GenAI exploration for quality assurance, cloud-native development, and integration of SRE with AIOps as key trends in U.S. application development and management.

How is AI impacting application development and management in the U.S.?

AI is automating ADM tasks, improving software quality, reducing downtime, increasing developer productivity, and enabling proactive maintenance in U.S. enterprises.

What benefits does cloud-native development offer to U.S. companies according to the ISG report?

Cloud-native development offers U.S. companies greater scalability, resilience, flexibility, and the ability to quickly respond to changing market trends and customer needs.

Which companies were named Leaders in the ISG Provider Lens™ Next-Gen ADM Services report for the U.S.?

Accenture, Capgemini, Cognizant, Deloitte, HCLTech, IBM, Infosys, and TCS were named Leaders in four quadrants each in the ISG report.

What challenges do U.S. enterprises face in adopting AI for application development and management?

U.S. enterprises face challenges in applying AI to specific use cases and determining the potential ROI of generative AI in application development and management.

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