III Information Services Group Inc.

Application Development Innovation Surges in Asia Pacific

Enterprises in Asia Pacific are quickly adopting new application development and maintenance (ADM) technologies as they carry out digital transformations, according to a new research report published today by Information Services Group () (Nasdaq: ), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Next-gen ADM Services report for Asia Pacific finds that the region’s ADM market is expanding rapidly, mostly driven by organizations upgrading legacy systems, migrating to the cloud and integrating advanced technologies such as AI and ML. The global market for ADM and infrastructure services grew 57 percent in Q2, thanks largely to burgeoning demand in emerging APAC markets, according to the most recent ISG Index™.

“Rapid economic growth, combined with organizations aggressively pursuing technology enabled business transformation, has delivered stronger ADM demand,” said Michael Gale, partner and regional leader, ISG Asia Pacific. “Technological advancements are also leading companies to invest in new ADM capabilities.”

Enterprises in the region aim to make ADM more accurate and efficient by using AI and automation, the report says. Driven partly by the shift to remote work, they are adopting Agile and DevOps practices, which can enable faster development and higher software quality. Other objectives include enhanced security, more data-driven decision-making and greater use of edge computing within growing networks of IoT devices.

A growing number of companies in Asia Pacific, under pressure to expand their software portfolios, are outsourcing some application development functions, ISG says. Service providers are handling the complexities of modern, microservices-based development and regulatory requirements, allowing enterprises to focus on core business goals. In many cases, companies are embracing cloud-native development, turning to providers for scalable solutions that can be deployed on major cloud platforms.

As technology constantly evolves, forcing enterprises to adapt to new tools and the regulations affecting them, many companies are engaging providers of application managed services, the report says. These partners deliver cost-effective, scalable solutions that typically include user support, cloud operations and application services. Leading providers in the region offer localized services in various languages, adapted to cultural nuances.

“Organizations in Asia Pacific face complex IT environments that include hybrid cloud, multicloud and legacy components,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “By outsourcing support of these systems, they can focus on staying ahead in digital transformation.”

The report also examines other trends in the Asia Pacific ADM market, including mergers and acquisitions among service providers and growing enterprise interest in sustainability and green IT.

For more insights into the ADM challenges faced by enterprises in Asia Pacific, including a shortage of AI and cloud computing talent and the complexities of regulatory compliance across a diversity of countries, along with ISG’s advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing .

The 2024 ISG Provider Lens™ Next-gen ADM Services report for Asia Pacific evaluates the capabilities of 35 providers across three quadrants: Agile Application Development Outsourcing, Application Managed Services and Application Quality Assurance.

The report names Accenture, Capgemini, Cognizant, DXC Technology, HCLTech, IBM, Infosys, TCS, Tech Mahindra and Wipro as Leaders in all three quadrants. It names LTIMindtree and Planit as Leaders in one quadrant each.

In addition, Hitachi Digital Services is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. FPT Software and LTIMindtree are named as Rising Stars in one quadrant each.

A customized version of the report is available from .

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among next-gen ADM service providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the , the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Next-gen ADM Services report for Asia Pacific is available to subscribers or for one-time purchase on this .

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., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this .

About ISG

ISG (Information Services Group) (Nasdaq: ) is a leading global technology research and advisory firm. A trusted business partner to more than 900 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 AI, 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 1,600 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 .

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13/10/2024

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