Pandemic Leads Enterprises to Focus on Next-Gen App Development

ISG Provider Lens™ report sees companies across the globe using app development services to move to the cloud, create new digital experience models

The COVID-19 pandemic has prompted enterprises across the globe to launch next-generation application development initiatives to support cloud migration, overhaul legacy architecture and create omnichannel digital experience models, 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 Services Archetype Report finds the pandemic has caused many enterprises to accelerate the modernization of their IT infrastructure, including application development. In the past year, many companies have been focused on improving internal collaboration, launching novel commercial models and achieving continuous improvement.

“The pandemic has forced many companies to look at continuous transformation as a way to stay ahead of the competition,” said Prashant Kelker, partner, Digital Strategy and Solutions, for ISG. “During the past year, many have realized it is better to keep elevating operational efficiency and finding new ways to reach customers incrementally, rather than treating each improvement as a one-off effort.”

As enterprises looked at application development and maintenance efforts, many embraced new ways of working in response to the pandemic, the report says. Instead of focusing on the physical location of application delivery teams, enterprises sought an organized structure focused on enhancing value to the customer. Many ADM providers found new ways of getting their application development teams to collaborate, using online solutions, and many also focused on squad-based agile delivery.

In addition, enterprises have moved from focusing on app development project outputs to focusing on business outcomes, the report adds. Enterprise clients are also embracing flexible pricing models in application outsourcing contracts.

The ISG Provider Lens™ Next-Gen Application Development and Maintenance Services Archetype Report examines three different types of clients, or archetypes, that are looking for application development and maintenance services. The report evaluates the capabilities of 19 ADM providers to deliver services to the three archetypes:

Enterprise Modernization: These clients want to overhaul their legacy systems to gain enterprise agility. The objective is to integrate various application touchpoints and silos, build cloud-native applications, implement advanced technologies, and ensure quicker time-to-market and an enhanced customer experience. They are seeking providers that have modernization and cloud experience, can operate in an agile and DevOps model, and are competent with the emerging technology stack.

Operational Excellence: These clients aim to reduce cost and achieve efficacy in applications management. The scope of work includes leveraging automation, ticket resolution, incident elimination and preempting application failures. Their main objectives include the implementation of sophisticated maintenance philosophies such as AIOps, application upgrades and the reduction of discretionary application maintenance expenditure over time.

Packaged Software Implementations: These enterprises aim to either upgrade or move from one commercial off-the-shelf application or packaged technology ecosystem to another. This involves upgrading to the latest version of the current product suite or shifting to another product technology vendor. This also includes greenfield or brownfield implementations of one or more software categories such as enterprise resource planning modules, customer relationship management, customer data platforms, big data and analytics, web content management, collaboration software suites and commerce websites.

Among the providers ISG evaluated, Atos, Capgemini, Cognizant, HCL, Hexaware, Infosys, LTI, Tech Mahindra and Wipro were named leaders across all three archetypes. The report names Mindtree a Leader in two archetypes and Coforge, Softtek and UST as Leaders in one.

A customized version of the report is available from Hexaware.

The ISG Provider Lens™ Next-Gen Application Development and Maintenance Services Archetype Report is available to subscribers or for immediate, 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.

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