Cyber Security

Flexibility Key to Meeting Europe’s Next-Gen ADM Needs

Evolving expectations for localization, sustainability and data sovereignty require providers to demonstrate adaptability, ISG Provider Lens™ report says

Providers of next-generation application development and maintenance (ADM) services in Europe must demonstrate a high degree of flexibility to meet the complex and evolving requirements of doing business in the region, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

Amid ongoing digital transformation, cloud-based ADM services have become a linchpin for companies striving to compete in a fast-paced, tech-driven market, the ISG report says. According to the report, more service providers are partnering with cloud providers to deliver cloud-native applications that quickly meet evolving customer needs.

The report also notes an increase in cyber threats from the Russo-Ukrainian war and enhanced requirements for data security under GDPR have accelerated the adoption of DevSecOps, which requires a deep understanding of the potential security risks associated with application development and a proactive approach to addressing those risks from the outset.

ADM providers in Europe also must adhere to data sovereignty laws that may require local data centers for specific sectors, ISG says. According to the report, providers may also need to comply with different industry-specific regulations, such as PSD2 in the banking sector.

At the same time, minimizing the carbon footprint associated with software development and deployment and pursuing green ADM strategies are vital, the report says. That includes designing energy-efficient software and disposing of e-waste responsibly. Providers are expected to align with regulations such as Europe’s Waste Electrical and Electronic Equipment (WEEE) Directive, ISG says.

Finally, localization is key. European enterprises expect providers to incorporate language support and cultural sensitivity in user interfaces, the report says.

“European enterprises expect next-gen ADM providers to jump through quite a few hoops to earn their trust,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “That includes covering the region’s many languages, local cultures, requirements and regulations, especially when it comes to data privacy and cybersecurity norms.”

The report also examines how AI-driven zero-touch operations are providing predictive and proactive monitoring via AIOps-led use cases.

The 2023 ISG Provider Lens™ Next-Gen ADM Services report for Europe evaluates the capabilities of 32 providers across three quadrants: Agile Application Development Outsourcing, Application Managed Services and Application Quality Assurance.

The report names Accenture, Capgemini, Cognizant, DXC Technology, HCLTech, Infosys and Wipro as Leaders in all three quadrants, while Eviden is named as a Leader in two quadrants. Deloitte, Sopra Steria and TCS are named as Leaders in one quadrant each.

In addition, LTIMindtree is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants, while N-iX, TCS and Tietoevry are named as Rising Stars in one quadrant each.

A customized version of the report is available from Capgemini.

The 2023 ISG Provider Lens™ Next-Gen ADM Services report for Europe is available to subscribers or for one-time purchase on this webpage.

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