STAMFORD, Conn., March 19, 2019 — Next-gen application development vendors are branching out into analytics, the Internet of Things, SaaS-based offerings, security and mobile apps to help clients solve business problems, create new growth opportunities and improve profits, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The ISG Provider Lens™ Next-Gen Application Development and Maintenance (ADM) Services Archetype Report also finds next-generation application maintenance evolving, as providers focus on ways to achieve cost savings through intelligent automation and other technologies. These new efforts are reducing the cost of maintenance by 20 to 30 percent, the report said.
“Enterprises are often pairing next-gen ADM technologies with the DevOps development methodology, and DevSecOps, with an added emphasis on secure development, is becoming the ‘new normal’ for enterprises,” said Esteban Herrera, partner and global leader of ISG Research.
“Enterprises and providers alike are realizing that security cannot be an afterthought,” he said. “Security principles are being incorporated as a default feature in early DevOps implementation phases.”
The report also finds so-called digital labor assisting in the ADM process. Digital labor goes beyond bot-based automation and now includes diagnostic, predictive and remediating capabilities using intelligence acquired over time.
In addition, enterprises are moving toward rapid application development, with their business, engineering and operations organizations required to quickly add new features to existing applications and release new features into the market. Many providers, meanwhile, prefer to engage with full-stack developers to avoid unnecessary coordination cycles, the report said.
The ISG Provider Lens™ Next-Gen Application Development and Maintenance (ADM) Services Archetype Report examines three different types of clients, or archetypes, that are looking for ADM providers. The report evaluates the capabilities of 21 ADM providers to deliver services to the three archetypes:
Digital transformation: Clients focused on digital transformation are adopting and integrating advanced technologies, operations and business processes. They want to become more customer-centric and create a competitive advantage through the quick rollout of applications, enabled through the use of agile development frameworks. They are often interested in output- and outcome-based outsourcing pricing models.
Leveraging packaged software platforms: In this buying scenario, the client is looking to leverage off-the-shelf packaged solutions to build its own intrinsic platforms, or move existing application landscapes to external platforms from technology vendors. These clients are seeking to engage with providers that have platform cycle knowledge and have platform integration skills. They tend to select providers that are strong on automation and SaaS-based technology offerings.
Managed services: These clients want to offload the application maintenance services (AMS) function to a managed services mode, to improve IT maturity and strengthen governance practices. These clients don’t want to be bothered with micromanaging the operational aspects of applications. They are focused on application rationalization as a way to create quicker, closely integrated and user-friendly applications, platforms and systems in place. They want a well-defined service scope in their managed services contracts, and they prefer fixed-fee or application-based pricing.
Among the providers ISG evaluated, Cognizant, DXC Technology, HCL, IBM, Infosys and Wipro were named leaders across all three archetypes. Atos, Capgemini, LTI and Mindtree were named leaders in two, while EPAM, Tech Mahindra and UST Global were named leaders for one archetype.
Customized versions of the report are available from Mindtree and UST Global.
The ISG Provider Lens™ Next-Gen Application Development and Maintenance (ADM) Services Report is available to ISG Insights™ subscribers or for immediate, one-time purchase on this web page.
About ISG Provider Lens™ Research
The ISG Provider Lens™ 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 and Latin America, as well as in the U.S., Germany, the U.K., 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.
ISG Provider Lens Archetype reports offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
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 70 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; 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.
SOURCE Information Services Group, Inc.