ISG Provider Lens™ report sees companies
seeking assistance while looking to expand their digital business
capabilities
U.K. enterprises are turning to application development and
maintenance providers to help them meet the twin challenges of
COVID-19 and Brexit and expand their digital business capabilities,
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.K. finds the
application development and maintenance (ADM) market is growing
rapidly in the U.K. with the increase in digital business
demands.
“Both the ongoing pandemic and Brexit have increased the need
for U.K. enterprises to optimize IT costs and harness new
technologies to gain a competitive advantage in an ever-changing
market environment,” said Ola Chowning, partner, Digital Strategy
and Solutions for ISG.
Agile development has become a high priority for U.K. companies
needing to define software requirements and react quickly while
trying to maintain software quality, the report says. Brexit has
given many enterprises an increased sense of urgency, leading to
faster decision making and a focus on clear value propositions.
In addition, Brexit is expected to lead to a shortage of
qualified software developers in the U.K., with limitations on
foreign workers in the country and uncertainty about employing
remote workers from within the European Union. As a result, some
smaller software development providers in the U.K. may lose market
share to larger, international providers.
The report also finds ADM service providers offering many tools,
frameworks and methodologies, making the market confusing to many
enterprise clients. Service providers often partner with other
framework, software and solutions providers, but also develop their
own, proprietary platforms and methodologies, leading to additional
market confusion.
The ADM market in the U.K. is driven by client requirements
including cost reduction, modernization and speed to market, but
implementation varies significantly across client application
environments. Providers make the environment more complex when they
try to cover as many client scenarios as possible.
The report also finds the accelerated use of agile development
practices has exposed limitations in scaling agile development
within large enterprises. The number of tools and frameworks are
nearly endless, and when companies free their agile teams to choose
their tools, both clients and providers find it difficult to
integrate agile development processes.
In addition, DevOps continues to be a challenge for most
enterprises, with less than half of all agile development teams
using it efficiently, the report says. Automating repetitive tasks
is necessary, and without automation, development teams tend to
skip process steps, including quality assurance.
Meanwhile, the managed application services market has been
adapting to automation, agile and new business and software
functionality demands, the report says. Providers are being
challenged to focus on enhancement requests and application bug
fixing, alongside requests for new functionalities, often with
short implementation timeframes. Leading organizations handle this
by separating new development streams from their enhancement and
bug fixing backlogs.
Many enterprises also continue to struggle to merge legacy
application maintenance and new applications running in agile mode,
the report adds. Automation has been gaining more attention and has
become a competitive differentiator. Service providers are merging
IT processes under automated operations with AI capabilities,
including AIOps. Providers add value by integrating AI-powered
automation throughout the development process, and especially in
quality assurance, to provide analytics dashboards and insights for
process improvement.
The 2021 ISG Provider Lens™ Next-Generation Application
Development and Maintenance Services Report for the U.K. evaluates
the capabilities of 41 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 Capgemini, Cognizant, HCL, Infosys and Wipro as
Leaders in three quadrants and Atos, Coforge and TCS as Leaders in
two. Accenture, Hexaware, LTI, Persistent Systems, Tech Mahindra,
UST and Zensar are named Leaders in one quadrant.
In addition, EPAM is named a Rising Star—companies with
“promising portfolios” and “high future potential” by ISG’s
definition—in two quadrants. LTI and Softtek are named Rising Stars
in one quadrant.
A customized version of the report is available from
Capgemini.
The 2021 ISG Provider Lens™ Next-Generation Application
Development and Maintenance Services Report for the U.K. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211019005404/en/
Press:
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Kate Hartley, Carrot Communications for ISG +44 (0)20 3457 6403
kate.hartley@carrotcomms.co.uk
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