Nordic Enterprises Seek to Automate App Development

Enterprises in the Nordics are seeking ADM providers that use automation and agile methods to lower app development costs, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2021 ISG Provider Lens™ Next-Generation Application Development and Maintenance Services Report for the Nordics sees the move toward cloud transformation and cloud-native applications driving most application modernization projects and demand for ADM services in the region. There is also a high demand for help migrating enterprise resource planning (ERP) workloads to the cloud.

“With a high cost of labor and a highly competitive market in the region, Nordic enterprises are looking to contain costs through automation,” said Ola Chowning, partner, Digital Strategy and Solutions for ISG. “ADM service providers are offering a whole set of automated app development tools, using AI, machine learning and other technologies.”

The report sees business models in the Nordics evolving to leverage open ecosystems and architectures based on application programming interfaces and microservices. As enterprises develop new apps, there is a gradual shift from project-based thinking to product-based thinking, with the focus on customer journeys and competitive features, the report adds.

In addition, Nordic enterprises are experimenting with low-code/no-code platforms to quickly provision apps to solve operational challenges, for example, provisioning a new feature in the collaboration tool for teams working from home.

Nordic enterprises are also embracing BizDevOps—product-focused application teams that manage the cradle-to-grave journey of applications. The DevOps concept is also being expanded to include DevSecOps for security and AIOps for operational excellence.

Nordic enterprises are looking for practical approaches to scale security across the application lifecycle, given the increasing risks associated with the software supply chain. Conversations around security include questions on conformity to industry standards, key performance indicators (KPI) linked to security, and specific roles and processes for managing security.

The report sees growing adoption of robotic process automation and IT process automation, to drive efficiency and effectiveness in increasingly industrialized delivery models. The goal is improved business outcomes and zero disruption across hybrid landscapes that are part of everything-as-a-service (XaaS) business models.

The quality assurance market, meanwhile, is moving toward AI-driven, end-to-end automation of testing, enabling enterprises to achieve rapid digital maturity with increasing delivery velocity. In the next three years, continuous testing services will mature significantly with plug-and-play capabilities, embedded intelligence, and integration of customer feedback, as production analytics and other test assets continue to move to the cloud, the report says.

The 2021 ISG Provider Lens™ Next-Generation Application Development and Maintenance Services Report for the Nordics evaluates the capabilities of 22 providers across three quadrants: Application Development and Scaled Agile, Managed Application Services and Application Quality Assurance and Continuous Testing.

The report names Capgemini, HCL, TCS and TietoEVRY as Leaders in three quadrants and Wipro as a Leader in one quadrant.

Customized versions of the report are available from Capgemini and TietoEVRY.

The 2021 ISG Provider Lens™ Next-Generation Application Development and Maintenance Services Report for the Nordics 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., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

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: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 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 www.isg-one.com.

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Contact information

Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com

Kate Hartley, Carrot Communications for ISG
+44 (0)20 3457 6403
kate.hartley@carrotcomms.co.uk