Providers Help U.S. Firms Bring Applications into AI Era
MWN-AI** Summary
U.S. enterprises are undergoing a significant transformation in application development and maintenance (ADM), as detailed in the latest ISG Provider Lens® report. This evolution is driven by the integration of artificial intelligence (AI) and automation across ADM operations, which enhances efficiency, adaptability, and resilience of applications. Organizations are now seeking outcome-focused contracts with service providers, emphasizing measurable results such as expedited release cycles, increased system availability, and enhanced user satisfaction.
Shafqat Azim, an ISG partner, highlights that AI is revolutionizing how organizations manage and modernize applications, shifting from reactive support to a proactive model that fuels business growth and innovation. Compelling advancements in workflows powered by AI-driven observability and predictive analytics have emerged, drastically lowering mean time to repair (MTTR) and improving compliance, particularly in regulated sectors like healthcare and finance.
The report emphasizes a growing shift towards continuous testing and AI-driven quality engineering (QE) frameworks, replacing static QA processes. This transformation aids organizations in maintaining consistent application quality amidst rapid development cycles. Additionally, AI-assisted code analysis is streamlining modernization projects, making the transition to cloud-native architectures smoother.
Leading companies identified in the report include Accenture, Deloitte, and IBM, recognized as leaders across multiple categories of ADM services. The analysis also brings attention to upcoming entities like LTIMindtree, celebrated for exceptional customer satisfaction in AI-driven services.
Overall, the findings suggest that enterprises in the U.S. expect ADM frameworks to foster continuous innovation and offer substantial value, reinforcing a competitive edge in an increasingly digital economy. The full report delves deeper into these trends and challenges faced by organizations striving to harness AI for operational excellence.
MWN-AI** Analysis
The latest ISG Provider Lens® report underscores a pivotal shift in Application Development and Maintenance (ADM) among U.S. enterprises, driven by the integration of AI capabilities. As organizations increasingly recognize the potential of AI to enhance application resilience and adaptability, a strategic engagement with service providers is becoming essential. This trend represents an opportunity for both established firms and emerging players in the ADM sector.
Investors should consider the implications of these findings on the broader technology market. Key players like Accenture, Capgemini, and Deloitte remain at the forefront due to their robust offerings and proven track records in AI-driven services. Companies looking to modernize their ADM processes should evaluate partnerships with these leaders, as their focus on measurable outcomes—such as reduced release cycles and enhanced user satisfaction—aligns with the market’s shifting demands.
Furthermore, businesses in regulated sectors, including finance and healthcare, should prioritize vendors offering AI-driven compliance solutions. The ability to achieve both operational excellence and regulatory adherence through advanced analytics and automation will be critical as these firms navigate increasingly complex landscapes.
Investing in companies recognized as "Rising Stars" in the report, like DXC Technology and Unisys, may also yield dividends as these firms work towards scaling their AI capabilities. Their growth potential in niche areas can complement larger stakeholders' portfolios.
In conclusion, as the ADM landscape evolves with AI at its core, strategic partnerships and investments in innovative technology providers offer a promising avenue for growth and competitiveness. Firms that adapt to these trends swiftly will likely secure a significant advantage in the increasingly digital business environment.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Companies form broader partnerships to turn application development, maintenance into engines of innovation, competitiveness, ISG Provider Lens ® report says
U.S. enterprises are changing the way they carry out application development and maintenance (ADM), including closer engagement with service providers, as AI opens up new possibilities for efficiency and agility, 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 ADM Services report for the U.S. finds that organizations are embedding AI and automation into every layer of ADM operations to make applications more resilient and adaptable to new requirements. As they adopt this approach, they are seeking outcome-focused contracts with service providers that tie performance to measurable results such as faster release cycles, higher system availability and improved user satisfaction.
“AI is reshaping how U.S. enterprises develop, manage and modernize applications,” said Shafqat Azim, ISG partner and Americas lead, Digital Transformation. “Organizations are transforming ADM from a reactive support model into a proactive function that directly supports business growth and innovation.”
Companies in the U.S. are enhancing the performance and reliability of ADM workflows with AI-based observability, predictive analytics and automation, the report says. AI-enabled platforms automate performance tracking, business metric monitoring and incident prediction and response in real time. These capabilities significantly reduce mean time to repair (MTTR) and improve adherence to service-level agreements (SLAs). Companies in regulated sectors such as healthcare and financial services are adopting these tools to maintain compliance while improving uptime and user experience.
These trends are also redefining how U.S. organizations approach legacy systems, ISG says. Enterprises are using AI-assisted code analysis and refactoring to streamline application modernization projects, enabling faster migration to cloud-native and microservices architectures. They increasingly use GenAI for reverse engineering, test case generation and documentation, helping teams finish transformation projects faster while improving quality.
Application quality assurance (QA) is becoming a critical piece of the new approach to ADM, the report says. Enterprises are replacing static QA processes with continuous testing and AI-driven quality engineering (QE) frameworks. Automated test creation, self-healing scripts and cognitive QA ensure that applications stay consistent and reliable throughout rapid release cycles. Domain-specific QA tools are gaining momentum as enterprises in sectors such as banking, retail and healthcare test applications for compliance and customer experience.
“U.S. enterprises expect ADM services to deliver continuous innovation, resilience, and measurable value,” said Akhila Harinarayan, manager and principal analyst, ISG Provider Lens Research, and lead author of the report. “By applying AI across the ADM lifecycle, providers are helping clients achieve faster modernization, improved reliability and a sharper competitive edge.”
The report also explores other ADM trends in the U.S., including the growing role of hyperautomation and AI for operations (AIOps) in application management and the rise of intelligent DevSecOps frameworks for proactive governance and compliance.
For more insights into the ADM-related challenges faced by enterprises in the U.S., plus ISG’s advice for overcoming them, see the ISG Provider Lens® Focal Points briefing here .
The 2025 ISG Provider Lens® AI-Driven ADM Services report for the U.S. evaluates the capabilities of 53 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 Accenture, Capgemini, Coforge, Cognizant, Deloitte, HCLTech, Hexaware, IBM, Infosys, TCS and UST as Leaders in three quadrants each. It names Apexon, Hitachi Digital Services, HTC Global Services, Infinite Computer Solutions and Wipro as Leaders in two quadrants each. Atos, Birlasoft, Persistent Systems, Sutherland and Tech Mahindra are named as Leaders in one quadrant each.
In addition, DXC Technology, HTC Global Services, ITC Infotech, NTT DATA, Qualitest, TestingXperts and Unisys are recognized as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
In the area of customer experience, LTIMindtree is named the global ISG CX Star Performer for 2025 among AI-driven ADM Services 2025 providers. LTIMindtree earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program , the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from Birlasoft and Capgemini .
The 2025 ISG Provider Lens® AI-Driven ADM Services report for the U.S. 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/20251017578001/en/
Press Contacts:
Laura Hupprich, ISG
+1 203 517 3100
laura.hupprich@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com
FAQ**
How is Information Services Group Inc. III leveraging AI and automation in its ADM services to enhance competitive advantage for U.S. enterprises?
What specific measurable results are U.S. organizations seeking from service providers like Information Services Group Inc. III in their application development and maintenance contracts?
How do AI-driven quality engineering frameworks replace traditional QA processes in ADM, according to Information Services Group Inc. III's findings?
What role does Information Services Group Inc. III see for hyperautomation and AIOps in the future of application management and compliance?
**MWN-AI FAQ is based on asking OpenAI questions about Information Services Group Inc. (NASDAQ: III).
NASDAQ: III
III Trading
-1.85% G/L:
$4.2107 Last:
41,329 Volume:
$4.17 Open:
