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Nordic Firms Modernize Apps for Fast-Changing Conditions

Companies seek partners to implement agile, automated application development and management as business challenges mount, ISG Provider Lens report says

Enterprises in the Nordics are increasingly using IT outsourcing to transform application development in the face of changing business requirements, 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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“Other trends are back in focus, forcing companies to accelerate application modernization.”

The 2022 ISG Provider Lens Next-Gen ADM Services report for the Nordics finds most business process applications in Nordic enterprises are still based on legacy architectures. Companies are turning to outside providers for help making application development faster, more agile and more efficient. This need looms as enterprises face challenges that were temporarily overshadowed by the COVID-19 pandemic: cloud migration, the need for simpler application landscapes and the importance of sustainability, which is of particular concern in the Nordics, ISG says.

“The technology and business changes related to the pandemic are now part of ‘business as usual’ in the Nordics,” said Anna Medkouri, partner and Technology Modernization Solutions lead for ISG EMEA. “Other trends are back in focus, forcing companies to accelerate application modernization.”

Other issues, including inflation, potential food and fuel shortages and the war in Ukraine, add to concerns for companies in the Nordics, the report says. The war has heightened worries about cyberattacks in the Nordics, but it may also lead to growth in the region’s defense sector, including technologies such as cybersecurity and autonomous systems, ISG says.

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Traditional project-based application management is increasingly shifting to a product-based approach with more integration among development, enhancement and support. Automated application management, especially the use of bots, is also accelerating rapidly in the Nordics, the report says. Companies in the Nordics are joining this trend and seeking managed services that support continuous innovation and transformation, but they are largely holding onto existing development and management processes for their legacy applications.

As enterprises in the region embrace Agile and DevOps methods, they are also adopting quality assurance and continuous testing services, including automated testing processes using AI and machine learning, ISG says. These help to enable continuous integration and delivery, reducing time to market.

“Quality engineering and quality assurance are more important than ever,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “IoT and security threats have heightened the urgency of testing.”

The report explores a wide range of other application development issues in the Nordics, including the increasing use of bots for automated development and growing demand for unified DevOps models.

The 2022 ISG Provider Lens™ Next-Gen ADM Services report for the Nordics evaluates the capabilities of 26 providers across three quadrants: Agile Application Development Outsourcing and Projects, Application Managed Services, and Application Quality Assurance and Continuous Testing Specialists.

The report names Accenture, Capgemini, HCL and Tietoevry as Leaders in three quadrants each. DXC Technology and Wipro are named as Leaders in one quadrant each.

In addition, DXC Technology and N-iX are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

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