The European next-generation Application Development and Maintenance (ADM) market has seen significant changes in the past 18 months. Generative AI (GenAI) innovations, legacy modernization needs, and regulatory compliance demands are driving these changes. GenAI is revolutionizing application development by automating complex tasks like code generation, bug detection, and performance optimization.
This reduces development cycles and improves accuracy. These advancements meet the growing demand for scalable and compliant ADM solutions that adhere to European regulations like GDPR. Dr.
Matthias Paletta, ISG research director and technology modernization solution lead, said, “The continuing trend towards GenAI adoption is driving persistent innovation in development processes. The use of GenAI is key to future differentiation and leadership in ADM.”
Adopting GenAI requires substantial investments in infrastructure and training. Challenges remain in ensuring data privacy and ethical AI use.
Integrating advanced tools with existing legacy systems without disrupting ongoing operations is also a significant hurdle. This is compounded by a shortage of skilled personnel in GenAI.
GenAI transforms European ADM landscape
Jan Erik Aase, partner and global leader, ISG Provider Lens Research, said, “GenAI can transform legacy code into modern, efficient methods with little or no human intervention. Organizations are using GenAI to help automate the transformation of outdated systems.”
Clients aiming to improve their time to market and operational efficiency have widely adopted Agile and DevOps approaches. These strategies enable faster release cycles, enhanced quality, and better alignment between development and business goals.
Larger providers with global reach and local expertise dominate the next-gen ADM space. Smaller providers, while more limited in geographical reach and resources, can remain competitive by focusing on niche markets and offering specialized services and personalized client engagements. The 2024 ISG Provider Lens™ Next-Generation ADM Services report for Europe evaluates the capabilities of 38 providers across four quadrants.
Accenture, Capgemini, Cognizant, HCLTech, IBM, and Infosys are named Leaders in all four quadrants. DXC Technology and Wipro are leaders in three quadrants each, and Deloitte and TCS are leaders in one quadrant each. T-Systems is recognized as a Rising Star in two quadrants.
Deloitte and DXC Technologies are noted as Rising Stars in one quadrant each. Persistent Systems is named the global ISG CX Star Performer for 2024 among next-generation ADM service providers, earning the highest customer satisfaction scores in ISG’s Voice of the Customer survey. The report is available to subscribers or for one-time purchase.
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