U.S. enterprises steadily adopt modern approaches to software even as pandemic, economic jitters and changes in work slow progress, ISG Provider Lens report says
Application development and maintenance (ADM) continues to evolve at enterprises and service providers in the U.S. despite several factors slowing digital transformation initiatives, according to a new research report published by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
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“Next-generation development approaches result in solutions that deliver better customer and user experiences”
The 2022 ISG Provider Lens Next-Gen ADM Services report for the U.S. finds that the COVID-19 pandemic, the Great Resignation and rapid changes in workstyles and workplaces over the past few years have hampered adoption of Agile, DevOps and DevSecOps methodologies. In the U.S., inflation and fears of recession have caused companies to dial back investments, freeze hiring and lay off workers. However, enterprises are still working to better align IT and business goals more closely through advances in ADM, ISG says.
“Next-generation development approaches result in solutions that deliver better customer and user experiences,” said Shafqat Azim, partner, ISG Digital Strategy and Solutions. “Traditional IT-powered business tools seem complex and opaque to many users, especially young digital natives. They want streamlined, Amazon-like experiences.”
Both enterprises and service providers are moving toward more cloud-native, digital-first ADM solutions enabled by automation and AI, the report says. Economic jitters in the U.S. mean ADM transformation may take an extra 12 to 18 months — or longer — to come to fruition, the report says. However, there is strong momentum behind the far-reaching changes occurring in the application space.
“Companies that have seen the benefits of agile development are now bringing agile thinking to application management and even business operations,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.
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Among the report’s findings is that security remains a critical concern for service providers and their enterprise customers, to the point where they are working to build security into every phase of ADM. Protecting data privacy is also a growing priority, driven by the increasing complexity of regulations in the U.S. and beyond.
Companies are also integrating testing into every phase of development, adopting a “zero test” model that uses continuous, highly automated, end-to-end testing supported by AI and machine learning, ISG says. In addition, low-code/no-code development platforms have moved beyond the experimentation stage, with many enterprises deploying applications built by “citizen developers,” while service providers help to ensure those applications meet security, interoperability and manageability requirements.
The report also examines several other major ADM trends in the U.S. and beyond, including the continuing rise of open ecosystems, the growing adoption of multi-cloud strategies and companies’ ongoing efforts to slash application management and maintenance costs through automation.
For more insights into the application challenges U.S. enterprises face, and advice on how to approach them, see the ISG Provider Lens™ Focal Points briefing here.
The 2022 ISG Provider Lens™ Next-Gen ADM Services report for the U.S. evaluates the capabilities of 40 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, HCL, Infosys, TCS and Wipro as Leaders in three quadrants each. It names Birlasoft, Hexaware and UST as Leaders in two quadrants each. Cigniti, Coforge, DXC Technology, LTI, Mindtree, Persistent Systems, Tech Mahindra and Zensar are named as Leaders in one quadrant each.
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