Enterprises are partnering with providers of next-generation application development and maintenance (ADM) services on application modernization projects of varying ambition and scope, according to a new research report published today by Information Services Group (ISG) a leading global technology research and advisory firm.
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“Whether they are overhauling their whole application environment or just implementing a new software product, there are service providers that can contribute valuable guidance and expertise.”
The 2022 ISG Provider Lens™ Next-Gen ADM Services Archetype report finds that the COVID-19 pandemic led many enterprises to update or transform their application environments, with large-scale automation for cost reduction being a goal for almost all clients. Other common objectives include improving supply chain visibility, detecting and eliminating failures early in development and reducing technical debt.
“Many companies are modernizing their ADM capabilities for core business goals, such as increasing business resilience and strengthening real-time decision-making,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Whether they are overhauling their whole application environment or just implementing a new software product, there are service providers that can contribute valuable guidance and expertise.”
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The 2022 ISG Provider Lens Next-Gen ADM Services Archetype report summarizes the relative capabilities of ADM service providers to meet the needs of typical, frequently encountered categories, or archetypes, of enterprise buyers. Each archetype represents a specific set of business and technology needs and challenges. The characteristics of each archetype vary over time as business conditions change, shifting the relative importance of different requirements. Most organizations, especially large enterprises, include people in multiple archetypes.
The report examines three archetypes within enterprise clients that are looking for next-generation ADM services. The report evaluates the capabilities of 25 providers to deliver services to the three archetypes:
Leveraging Packaged Software Platforms: Clients that fit this archetype are seeking to deploy new commercial software products, upgrade to a new version of an existing platform (such as migrating to SAP S/4HANA) or moving from one software ecosystem to another. They look for providers that have strategic partnerships with packaged technology vendors and can work in multi-technology environments. These engagements typically do not provide long-term competitive advantage but can be important steps to larger transformations.
Operational Excellence: These clients seek long-term managed services contracts for resolving incidents, preempting failures, upgrading applications and other functions, with increased efficiency through automation and AI. They want to save money on application management to invest in new digital initiatives and innovation, working in lockstep with the provider toward agreed milestones.
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