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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 () (Nasdaq: ), a leading global technology research and advisory firm.

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.

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.

A customized version of the report is available from .

The 2022 ISG Provider Lens™ Next-Gen ADM Services report for the Nordics 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, 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 .

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: ) is a leading global technology research and advisory firm. A trusted business partner to more than 800 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 .

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