ISG Launches Study on Generative AI in Application Development

Upcoming ISG Provider Lens™ study will assess the capabilities of service providers integrating generative AI into their application development portfolios

Information Services Group (ISG) III, a global AI-centered technology research and advisory firm, is set to launch a research study focusing on application development management (ADM) service providers. This initiative comes amid a significant shift in the ADM sourcing market due to the increasing integration of artificial intelligence.

The results will be compiled into a series of ISG Provider Lens™ reports titled AI-Driven ADM Services, which are expected to be released in October 2025. These reports will focus on service providers who are developing skills in generative AI and intelligent agents to drive measurable business outcomes for clients.

Enterprise buyers will benefit from these reports, which will help them assess their current vendor relationships, explore new options, and understand available offerings. Meanwhile, ISG advisors will leverage the findings to recommend suitable providers to their buy-side clients.

Today’s enterprises are in search of partners with the specialized skills necessary to implement AI-driven solutions for optimizing application development tasks. AI-enhanced tools can analyze historical user data, thus facilitating prioritization of application features. Additionally, AI-driven testing and quality assurance solutions enhance software reliability through intelligent test case generation and predictive quality assurance.

“As organizations emphasize data security and compliance, they require ADM providers capable of instituting robust security frameworks and managing associated risks,” stated Heiko Henkes, Managing Director, ISG Provider Lens Research. “A critical capability these partners should develop is the integration of AI and machine learning tools into application performance monitoring to detect anomalies and predict quality-of-service levels for new applications.”

ISG has distributed surveys to over 125 ADM service providers operating in the global ADM market. Collaborating with ISG’s global advisors, the research team will develop six quadrants that represent the AI-driven ADM services typically required by enterprises, based on ISG’s extensive client interactions. The six quadrants are:

• Application Development Outsourcing: This quadrant evaluates providers delivering AI-based application development outsourcing services across various technologies and sectors. Providers in this category often possess considerable consulting expertise, paired with strong partnerships to implement methodologies such as CI/CD pipelines, AI integration, and DevOps.

• Application Development Projects: This quadrant assesses providers that utilize AI in application development services. These providers offer tools, accelerators, and solutions to ensure rapid market delivery, cost optimization, and improved operational efficiency for clients.

• Application Managed Services – GSIs: This quadrant focuses on global system integrators (excluding niche specialists) who manage specific application portfolios, particularly for applications in production. Key functions include application support, enhancements, platform upgrades, security management, bug fixes, and troubleshooting.

• Application Managed Services – SIs: This quadrant evaluates providers specializing in specific technologies or industries. Unlike GSIs, these specialists deliver high-impact services with deep expertise in certain sectors.

• Application Quality Assurance: This quadrant assesses providers offering quality assurance services involving assessments, design, implementation, and managed services. Their offerings include traditional and AI-driven testing strategies, complemented by AI-driven predictive analytics for identifying bugs and measuring business process optimization.

• Continuous Testing Specialists: This quadrant studies providers ensuring that new features and code changes do not disrupt existing functionality. Their services incorporate robust testing methods and scripts, including AI-driven automation for execution.

The geographically focused reports will encompass the global AI-driven ADM services market, examining products and services in the U.S., Brazil, Europe, and the Asia Pacific region. Key authors for this report include ISG analysts Akhila Harinarayan (U.S.), Pedro L. Bicudo Maschio (Brazil), Oliver Nickels (Europe and Germany), and Maharshi Pandya (Asia Pacific).

A list of identified providers and vendors, along with additional details on the study, can be found in a digital brochure. Companies not currently listed as AI-driven ADM service providers are encouraged to contact ISG for inclusion in the study.

All 2025 ISG Provider Lens™ evaluations will feature expanded customer experience (CX) data, measuring enterprise experiences with specific services and solutions based on ISG’s continuous CX research. Enterprises wishing to share their experiences with specific providers or vendors are invited to complete an online survey, with participants receiving a copy of the report in exchange for their feedback.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series uniquely combines empirical, data-driven research and market analysis with the real-world insights from ISG’s global advisory team. Enterprises will find comprehensive data and market analysis to aid in selecting suitable sourcing partners, while ISG advisors can validate their market knowledge and make informed recommendations to clients. The research currently covers service providers globally and across various regions including Europe, the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia, and Singapore/Malaysia, with plans to expand into additional markets shortly. For more information on ISG Provider Lens research, please visit this webpage.

About ISG

ISG III is a global AI-focused technology research and advisory firm. Serving over 900 clients, including 75 of the world’s top 100 enterprises, ISG has established itself as a leader in technology and business services. The firm, founded in 2006, leverages proprietary market data, in-depth provider ecosystem knowledge, and insights from its 1,600 professionals worldwide to help clients maximize their technology investments for operational excellence and faster growth.

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Press Contacts:


Will Thoretz, ISG
+1 203 517 3119
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Julianna Sheridan, Matter Communications for ISG
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