ISG Provider Lens™ report sees growth in
outsourced app development and maintenance services as companies
look for business transformation
The COVID-19 pandemic has driven new demand for outsourced
application development and testing services in the U.S., with many
service providers seeing significant growth the past two years,
according to a new report published today by Information Services
Group (ISG) (Nasdaq: III), a leading global technology research and
advisory firm.
The 2021 ISG Provider Lens™ Next-Generation Application
Development and Maintenance Services Report for the U.S. finds
that, even during the pandemic, many U.S. enterprises continued
their journeys toward agile modernization and transformation to
address challenges related to the supply chain, customer
engagement, workforce collaboration and product delivery.
“Many U.S. enterprises are putting a new focus on application
development practices, processes and culture, including performance
measurements and team dynamics,” said Shafqat Azim, Digital
Strategy and Solutions for ISG. “They are turning to
next-generation ADM providers to help them meet these goals.”
To deal with the pandemic, many ADM providers pivoted to working
remotely, using virtual meetings, instant messaging and cloud
services to collaborate and close business deals, the report says.
Many service providers also restructured their contracts to provide
more financial flexibility and outcome predictability to enterprise
clients.
While ADM delivery became mostly virtual and remote during the
pandemic, many service providers in the U.S. are also seeking to
enhance their onshore or nearshore workforce, the report adds. In
many cases, they are trying to mitigate problems related to time
zone differences, and in some cases, they are working to maintain
business continuity across regions still experiencing the negative
effects of the pandemic.
In addition, many service providers have built accelerators and
their own tools and platforms to expedite the continuous
integration and continuous delivery (CI/CD) pipeline, application
releases and DevOps integration. The commercial off-the-shelf
product-set for DevOps is continuously expanding, and providers are
training their resources on these technologies. However, the report
finds less than half of agile development teams are using DevOps
successfully.
Providers with robust methodologies, established processes and
hands-on experience with automation tools are performing better
than counterparts that fail to provide these capabilities, the
report adds.
Many U.S. enterprises are interested in application
transformation services, the report says, and are looking to
enhance their ability to solve business challenges and harness
opportunities through meaningful digital solutions. As part of
their transformation initiatives, enterprises are expecting service
providers to coach, train and upskill their employees on new ways
of working and offer next-generation technologies.
In addition, cloud adoption and modernization are becoming an
integral part of most application transformation deals, the report
adds. Enterprises are now inclined to elevate their engagement
maturity by tracking business KPIs and outcomes as part of their
application development and maintenance strategies.
The report sees several trends related to application
development. Client business models are rapidly evolving by
leveraging open ecosystems and architectures based on application
programming interfaces and microservices. At the same time, service
providers are moving from a project-based to a product-based design
thinking approach.
In the area of application management, DevOps is expanding to
DevSecOps, BizDevOps and AIOps to focus on security, business
alignment and operational excellence. Providers and clients are
increasingly adopting robotic process automation, IT process
automation, bots, AI and machine learning to drive efficiency and
effectiveness. Industrialization with virtual or remote delivery
models is also gaining significant traction.
The 2021 ISG Provider Lens™ Next-Generation Application
Development and Maintenance Services Report for the U.S. evaluates
the capabilities of 39 providers across five quadrants: Application
Development and Scaled Agile, Agile Development Specialists,
Managed Application Services, Application Quality Assurance and
Continuous Testing Specialists.
The report names Accenture, Capgemini, Cognizant, HCL, Infosys,
TCS and Wipro as Leaders in three quadrants and Coforge, Hexaware,
Tech Mahindra and UST as Leaders in two. Atos, Birlasoft, Cigniti,
LTI and Persistent Systems are named Leaders in one quadrant.
In addition, LTI was named a Rising Star—companies with
“promising portfolios” and “high future potential” by ISG’s
definition—in two quadrants. Cybage was named a Rising Star in one
quadrant.
Customized versions of the report are available from Birlasoft,
Capgemini, Cigniti, Hexaware and Infosys.
The 2021 ISG Provider Lens™ Next-Generation Application
Development and Maintenance 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., Germany,
Switzerland, the U.K., France, the Nordics, Brazil and
Australia/New Zealand, 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 700 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20211018005708/en/
Press: Will Thoretz, ISG +1 203 517 3119
will.thoretz@isg-one.com Erik Arvidson, Matter Communications for
ISG +1 617 755 2985 isg@matternow.com
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