GenAI Transforms Application Services, Development in Brazil
MWN-AI** Summary
Generative AI (GenAI) is significantly transforming application development and management services in Brazil, according to insights from the ISG Provider Lens 2025 report. This shift is enhancing efficiency, speed, and quality across various enterprises. As organizations increasingly embrace AI capabilities offered by outsourcing and managed services, automation is emerging as a key tool for optimizing processes. Brazilian companies are leveraging GenAI to modernize legacy systems, automate routine tasks like user story creation, and manage quality assurance, thereby reducing testing and release cycles.
Shafqat Azim, an ISG partner, emphasizes that using GenAI in software development is becoming the new norm, positioning it as a crucial competitive advantage. The report highlights how firms utilize GenAI not only to streamline development but also to enhance Agile project management by automatically generating documentation and tracking team performance, which enables quicker identification of issues.
As service providers in Brazil adopt these AI-driven solutions, they offer flexibility for businesses to explore various pricing structures for traditional versus GenAI-enhanced services. Although fully autonomous AI agents are not yet available, many providers have developed specialized solutions that can help clients refine their operations further, transitioning technical experts from manual tasks to strategic oversight roles.
Overall, GenAI is reshaping the application services landscape in Brazil, fostering innovation and productivity while delivering measurable cost savings. The report recognizes key players in the sector, including Capgemini and Wipro, citing them as leaders in multiple categories. As the automation of application development gathers momentum, Brazilian businesses stand to gain significantly, not just in quality and efficiency but also in global competitive positioning in digital transformation initiatives.
MWN-AI** Analysis
The adoption of generative AI (GenAI) in application development and management services is revolutionizing the Brazilian market, making it imperative for enterprises considering their technological strategies to take notice. Driven by automation and improved efficiencies, companies are now leveraging GenAI to streamline Agile processes, enhance quality, and significantly reduce testing and release cycles, as highlighted in the recent ISG Provider Lens® report.
Brazilian enterprises are increasingly recognizing that incorporating GenAI in their workflows is no longer optional but essential. Applications and services underpinned by GenAI are proving to be powerful strategic enablers. As highlighted by Shafqat Azim from ISG, the capabilities of GenAI are positioning companies ahead of competitors by allowing them to efficiently manage software development while automating routine tasks—these include user story creation and intelligent code suggestions.
With several local and global service providers leading the charge, there's an opportunity for firms to engage in partnerships that deliver substantial financial benefits. Companies that evaluate pricing models for services with and without GenAI stand to appreciate the cost advantages associated with AI-enhanced application development.
Moreover, as more enterprises adopt GenAI, there’s a palpable shift in expertise requirements. IT personnel are transitioning from manual tasks to roles involving AI supervision, thereby aligning with a trend of increasing automation in quality assurance (QA) and continuous testing. This transformation points to a future where resource allocation is optimized effectively, paving the way for zero-defect software releases.
Investing in GenAI capabilities and associating with service providers adept in AI-driven methodologies can help enterprises not just meet but exceed market expectations. This is a pivotal moment for Brazilian companies—embracing GenAI not just equips them with technological advancements but also positions them as industry leaders.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Automation by service providers helps clients improve Agile processes, increase quality, shorten testing and release cycles, ISG Provider Lens ® report says
The addition of generative AI (GenAI) to application development and management services is delivering significant new benefits to enterprises in Brazil, improving efficiency, speed and quality, according to a new research report published today by Information Services Group ( ISG ) (Nasdaq: III ), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens ® AI-Driven Application Development and Maintenance (ADM) report for Brazil finds that organizations are embracing the growing AI capabilities of outsourcing, managed services and testing providers. Companies are adopting automation to optimize processes, modernize legacy systems and ensure compliance while working with providers to prepare employees for new roles in AI-supervised workflows. These developments are redefining application services as strategic enablers of cost savings, productivity and innovation in the Brazilian market.
“Brazilian enterprises are recognizing that GenAI has become indispensable for competitive application services,” said Shafqat Azim, ISG partner and Americas lead, Digital Transformation. “Writing software with GenAI is no longer an option. It is effectively the standard method of development.”
Generative AI is reshaping application development outsourcing strategies across Brazil, ISG says. Enterprises are automating repetitive tasks such as user story creation, intelligent code suggestions and test script generation to allocate resources strategically and shorten development cycles. Providers cannot offer fully autonomous AI agents yet, but some are adept at tailoring agents for specific processes, enabling clients to further optimize processes. With some providers, companies can compare pricing options for services with and without GenAI to see the financial advantages of AI-enhanced solutions.
AI-powered platforms are also enhancing Agile project management in Brazilian enterprises, the report says. Companies are using GenAI to automate documentation, track sentiment and measure team performance across multiple squads. This allows them to identify issues sooner and improve overall project outcomes.
Rapid adoption of GenAI by global and Brazilian application managed services system integrators is helping them optimize operations and deliver benefits such as zero-defect releases, ISG says. GenAI and machine learning are also enhancing application quality assurance (QA) and continuous testing services. Companies are automating QA tasks and decision-making within testing workflows, while continuous testing providers are integrating testing into the software delivery cycle for higher efficiency. Enterprises have a wide range of models for engaging with these providers, depending on their specific needs.
“GenAI is redefining the nature of expertise in Brazil’s ADM market,” said Pedro Luis Bicudo Maschio, analyst at ISG Provider Lens Research and lead author of the report. “With increasing automation, experts can shift from performing manual tasks to supervising AI agents and focusing on strategic activities.”
The report also explores other ADM trends in Brazil, including the use of predictive analytics in quality assurance and continuous testing and the potential of AI-powered assistants to enhance service management and user support.
For more insights into the ADM–related challenges faced by enterprises in Brazil, plus ISG’s advice for overcoming them, see the ISG Provider Lens ® Focal Points briefing here .
The 2025 ISG Provider Lens ® Application Development and Maintenance (ADM) report for Brazil evaluates 61 providers across six quadrants: Application Development Outsourcing, Application Development Projects, Application Managed Services — Global SIs, Application Managed Services — Local SIs, Application Quality Assurance and Continuous Testing Specialists.
The report names Capgemini, Compass UOL, GFT and Wipro as Leaders in three quadrants each. It names Accenture, BRQ, Meta, Spassu, Stefanini and Tech Mahindra as Leaders in two quadrants each. Base2, Cast group, CI&T, Deal, DXC Technology, e-Core, FCamara, Inmetrics, Objective, Prime Control, Sempre IT, Softtek, TCS, TIVIT, TQI, T-Systems, Vericode and Yaman are named as Leaders in one quadrant each.
In addition, Taking and TIVIT are recognized as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
Customized versions of the report are available from Meta , Objective , Prime Control , SoftDesign , Spassu , Stefanini and TQI .
In the area of customer experience, LTIMindtree is named the global ISG CX Star Performer for 2025 among AI-driven ADM service providers. LTIMindtree earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the ISG Star of Excellence™ program , the premier quality recognition for the technology and business services industry.
The 2025 ISG Provider Lens ® AI-Driven Application Development and Maintenance (ADM) report for Brazil is available to subscribers or for 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., 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 webpage .
About ISG
ISG (Nasdaq: III ) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251016147240/en/
Press Contacts:
Laura Hupprich, ISG
+1 203 517 3100
laura.hupprich@isg-one.com
Thábata Mondoni, Mondoni Press for ISG
Mobile: +55 11 98671 5652
thabata@mondonipress.com.br
FAQ**
How is Information Services Group Inc. III measuring the impact of generative AI on Agile practices and release cycles in Brazilian enterprises, according to their latest report?
What are the key benefits reported by Information Services Group Inc. III for companies implementing AI-driven application development and management services in Brazil?
How do the findings of Information Services Group Inc. III's report affect the competitive landscape for application development service providers in Brazil?
In what ways does Information Services Group Inc. III suggest that AI is changing the skill requirements for specialists within the Brazilian ADM market?
**MWN-AI FAQ is based on asking OpenAI questions about Information Services Group Inc. (NASDAQ: III).
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