U.S. Firms Modernize Application Methods for Speed, Agility

Rhea-AI Summary

A new report by Information Services Group (ISG) reveals that more U.S. enterprises are adopting Agile and DevOps methodologies for application development and maintenance. The report highlights the increasing use of site reliability engineering (SRE) and the demand for ADM services with an AI component. Additionally, the report explores trends such as business-led, cloud-based application development and data-driven application management.

Positive

• U.S. enterprises are adopting Agile and DevOps methodologies for application development and maintenance
• Increasing use of site reliability engineering (SRE) to improve software quality and reduce downtime
• Growing demand for ADM services with an AI component for accurate prediction of resource needs and generative AI capabilities
• Increasing trend of business-led, cloud-based application development and transformation of traditional monolithic applications into cloud architectures
• Rise of data-driven application management and need for customized software testing to support shorter release cycles

Negative

• None.

Providers help companies implement Agile and DevOps methods and AI-powered features to keep up with changing software requirements, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- A growing number of enterprises in the U.S. are adopting Agile and DevOps methodologies as new approaches to application development and maintenance (ADM) emerge, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Next-Gen ADM Services report for the U.S. finds that changes in ADM have accelerated in recent years. The trend particularly affects enterprises that are undergoing digital transformation and turning toward DevOps, which breaks down the division between development and operations to make software development and deployment more efficient.

“Companies want to develop applications that align with their IT modernization initiatives,” said Shafqat Azim, ISG Partner and Americas lead, Digital Transformation. “Agile and DevOps help them move into a digital, cloud-based future.”

Many organizations are focused on developing software that provides an exceptional customer experience, including outstanding user interfaces, the report says. New development methods enable companies to bring applications to market faster, improve software quality and foster closer collaboration among developers. They also give enterprises more flexibility to adapt to changing needs and make it easier to develop applications that meet specific business requirements.

DevOps adoption has gone hand in hand with increasing use of site reliability engineering (SRE), which helps organizations increase automation and monitoring to create highly scalable and reliable software systems with predictable operations, ISG says. Companies are using SRE to improve the quality of applications before deploying them in production, thereby reducing downtime.

Increasingly, enterprises are also seeking ADM services with an AI component, the report says. Among other things, AI enables accurate prediction of resource needs and bottlenecks through analytics and provides design tools that generate prototypes based on user requirements and design principles. Generative AI offers new capabilities, such as automatically completing code lines or writing snippets of code based on natural-language descriptions, that enterprises are closely watching.

“The growing use of AI, and even generative AI, is having a strong effect on ADM,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers are helping clients harness the power of these tools.”

Increasing demand for business-led, cloud-based application development is another major trend in this segment, ISG says. Companies are transforming traditional monolithic applications by incorporating them into cloud architectures, often using containerization and microservices, to increase scalability, resilience and agility.

The report also explores other ADM trends in the U.S., including the rise of data-driven application management and the growing need for customized software testing to support shorter release cycles.

For more insights into the ADM challenges U.S. enterprises face, including how to pursue software innovation and cost containment simultaneously, along with advice on how to address them, see the ISG Provider Lens™ Focal Points briefing here.

The 2023 ISG Provider Lens™ Next-Gen ADM Services report for the U.S. evaluates the capabilities of 47 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, Deloitte, HCLTech, Infosys, TCS and Wipro as Leaders in three quadrants each. It names Tech Mahindra and UST as Leaders in two quadrants each. Apexon, Birlasoft, Cigniti, Cybage, DXC Technology, Encora, Eviden, Hexaware, HTC Global, LTIMindtree, Qualitest and Zensar are named as Leaders in one quadrant each.

In addition, LTIMindtree and Quinnox 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 Capgemini and HTC Global.

The 2023 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 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 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 1,600 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231024741045/en/

Press Contacts:

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 methodologies are U.S. enterprises adopting for application development and maintenance?

U.S. enterprises are adopting Agile and DevOps methodologies for application development and maintenance.

What is site reliability engineering (SRE) and how is it being used?

Site reliability engineering (SRE) is being used to improve software quality and reduce downtime.

What is the demand for ADM services with an AI component?

There is a growing demand for ADM services with an AI component for accurate prediction of resource needs and generative AI capabilities.

What is the trend in business-led, cloud-based application development?

There is an increasing trend of business-led, cloud-based application development and transformation of traditional monolithic applications into cloud architectures.

What are the trends in data-driven application management?

There is a rise in data-driven application management and a growing need for customized software testing to support shorter release cycles.