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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 by Information Services Group (ISG) , 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.”

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“The pandemic has forced many companies to look at continuous transformation as a way to stay ahead of the competition”

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:

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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.

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