SÃO PAULO, Sept. 14, 2018
/PRNewswire/ -- Providers of application development and
maintenance (ADM) services in Brazil are pivoting toward agile development,
but the vast majority still rely on traditional approaches,
according to a new study by Information Services Group (ISG)
(Nasdaq: III), a leading global technology research and advisory
firm.
Traditional development still accounts for 70 percent of
development revenues among the 33 ADM providers evaluated in the
just published ISG Provider Lens™ Next-Gen ADM Services Quadrant
Report for Brazil. These
providers, the report says, face the challenge of adapting SAP and
other ERP and legacy applications to agile development.
Consequently, Brazil's ADM
services market is growing relatively slowly, at about 11 percent
annually for the providers in the study. The 10 best performers,
however, saw their revenues grow by an average of 31 percent. Five
of them have made significant improvements to their agile
offerings.
"The providers represented in this report are working daily on
changing the code for the digital world. Collectively, these
organizations dedicate more than 70 million hours to changing or
adding new application code for Brazilian businesses every year,"
said Esteban Herrera, partner and
global leader of ISG Research. "Still, they recognize they must
address the need for speed and increasingly adopt agile and
automated approaches for ADM services."
The ISG report finds the Brazilian market is still moving toward
automating the "applications lifecycle." Providers are investing in
platforms that accelerate development through libraries,
microservices, cloud, low-code programming, test automation and
robots for script writing. Maintenance platforms, meanwhile, use
cognitive and artificial intelligence to automate ticket
classification, run scripts that automate service delivery and
apply troubleshooting procedures.
With a greater focus on agile development, the majority of
providers in the report can now deliver new releases within a month
or less. Agile projects typically have eight to 10 developers
working on them, but scaling to hundreds of developers is still a
challenge. Several providers are using Scaled Agile Framework
(SAFe®), involving dozens of agile teams within a customer
organization, to help deliver projects at scale.
The report also sheds light on continuous testing, including
testing-as-a-service offerings used by development teams that are
further along the agile and DevOps maturity curve. Such cloud-based
services are used most notably for smartphone apps. Testing
services providers also are moving into the product certification
market to be able to assure the reliability and security of
software for everything from payment systems to connected
devices.
Not all providers are able to automate functional testing at
this point, but this capability is growing with the availability of
artificial intelligence and cognitive technology in the cloud.
Similarly, not all providers offer DevSecOps in their
methodologies, ISG cautions.
The ISG report also examines ADM trends in Brazil's Banking, Financial Services and
Insurance (BFSI) and Manufacturing verticals. Robotic process
automation is now a component of applications development in the
BFSI sector, and open banking, microservices, platforms and
blockchain are also important considerations. In manufacturing,
providers are still focused largely on upgrading legacy SAP-ECC
systems to SAP S/4HANA and migrating them to the cloud. Most
manufacturing companies in Brazil
have yet to take advantage of such Industry 4.0 advances as cloud,
Internet of Things and supply chain integration, the report
found.
The ISG Provider Lens Next-Gen ADM Services Quadrant Report -
Brazil evaluates the capabilities
of 33 ADM providers serving this market across five quadrants:
Next-Gen ADM, Agile Development, Continuous Testing, Next-Gen ADM –
BFSI, and Next-Gen ADM - Manufacturing. IBM named a leader in four
of the five quadrants, while Accenture, Capgemini, NTT DATA/Everis
and Wipro were named leaders in three of the quadrants.
Other recently released ISG Provider Lens Next-Gen ADM Quadrant
reports evaluate global and U.S. providers. Additional reports will
soon be issued on providers serving the Europe and UK markets, Germany, Australia and the Pan American region. The
reports are available to ISG Insights™ subscribers or for
immediate, one-time purchase on the ISG website.
A customized version of the global report is available from
Cognizant.
About ISG Provider Lens™ Quadrant 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 serving the U.S., Germany, Australia, Brazil and the UK, with additional markets to
be added in the future. For more information about ISG Provider
Lens research, please visit this webpage.
The series is a complement to the ISG Provider Lens Archetype
reports, which offer a first-of-its-kind evaluation of providers
from the perspective of specific buyer types. An ISG Provider Lens
Archetype report on Next-Gen ADM services will be published next
month.
About ISG
ISG (Information Services Group) (Nasdaq:
III) is a leading global technology research and advisory firm. A
trusted business partner to more than 700 clients, including 75 of
the top 100 enterprises in the world, 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;
technology 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 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.
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SOURCE Information Services Group, Inc.