Enterprises Demand Next-Generation ADM Services to Fuel Digital Transformation

2/27, 3:03 PM (Source: GlobeNewswire)

STAMFORD, Conn., Feb. 27, 2020 (GLOBE NEWSWIRE) -- Enterprise demand for application development and maintenance services is evolving, with a growing focus on large-scale digital transformation projects and software-as-a-service offerings, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2020 ISG Provider LensNext-Gen ADM Service Archetype Report also finds enterprises across the globe interested in ADM services based on packaged technology solutions and in managed application services contracts.

Complexity is driving the need for next-generation ADM services, the report says.

“Combining traditional business software with advanced cloud-based software and services creates massive software complexity that requires new approaches with better technologies, skills and tools,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Enterprises are becoming more aware that their increasingly complex software environments call for standardization, modernization and management beyond their own capabilities.”

Like traditional ADM services, next-gen ADM includes consulting, design, custom development, packaged software integration, operations and testing. However, as the digital initiatives of client enterprises accelerate, next-gen ADM also needs to leverage automation, artificial intelligence, new methodologies and a more expansive managed services approach, the report says. The scope, delivery mechanisms and outcomes of next-generation services build on approaches that focus on achieving enterprise agility and solving business problems.

The report assesses service providers based on their capabilities to augment traditional ADM services with emerging technologies and methodologies — like agile, DevOps, automation, digital and modernization techniques — to deliver application outsourcing projects. It also assesses provider capabilities in incorporating new approaches to develop and deliver applications that focus on business outcomes.

The 2020 ISG Provider LensNext-Gen ADM Service Archetype Report examines three different types of clients, or archetypes, that are looking for next-generation ADM services. The report evaluates the capabilities of 21 ADM providers to deliver services to the three archetypes:

Digital transformation: These enterprises seek competitive advantage through innovative use of established and advanced technologies. Rapid development and IT adaptation are important. Revenue increases drive this approach. These customers desire outcome-based pricing, where the service provider’s fee is directly linked to specified IT or business outcomes.

Leveraged packaged software platforms: These enterprises pursue standardized, consolidated and simplified enterprise software applications and associated services. This may involve the enterprise integrating its systems with external platforms like SAP HANA and Oracle, or building their own platforms. In recent years, these customers have increasingly used SaaS-based applications. Providers with experience in third-party automation tools are gaining traction with these customers.

Managed services: These customers seek to achieve IT maturity in terms of resource utilization, operational processes and business practices by handing over their ADM portfolios to one or more service providers. The providers ensure application reliability and availability as well as associated management. Most engagements follow a fixed-fee or application-based pricing approach, requiring service scope to be well defined. Automation is increasingly used by providers to bring down costs.

Among the providers ISG evaluated, Atos, Capgemini, DXC Technology, HCL, Infosys and Wipro were named leaders across all three archetypes. Accenture, Cognizant, IBM and TCS were named leaders in two archetypes, and LTI and Mindtree were named leaders in one.

A customized version of the report is available from Mindtree.

The 2020 ISG Provider LensNext-Gen ADM Service Archetype Report is available to ISG Insights™ subscribers or for immediate, one-time purchase on this webpage.

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., 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.

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 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.

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Will Thoretz
Information Services Group, Inc. 
+1 203 517 3119
Will.Thoretz@isg-one.com

Jim Baptiste
Matter Communications for ISG
+1 978 518 4527
jbaptiste@matternow.com
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