ISG to Evaluate Providers of AI-Driven ADM Services

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

Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, has launched a research study examining providers of application development management (ADM) services at a time when widespread integration of AI has triggered a massive shift in the ADM sourcing market.

The study results will be published in a comprehensive series of ISG Provider Lens™ reports, called AI-Driven ADM Services, scheduled to be released in October 2025. The geographically focused reports will cover service providers that are rapidly developing new skills and capabilities in GenAI and intelligent agents to deliver measurable business outcomes for their clients.

Enterprise buyers will be able to use information from the reports to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.

Today’s enterprises are seeking partners with specialized skills that enable them to deploy AI-driven solutions for streamlining application development activities such as requirements analysis, design and coding. AI-enhanced tools help enterprises prioritize application features by analyzing historical user data and insights, while AI-enabled testing and QA solutions enhance software reliability through intelligent test case generation and predictive quality assurance.

“As organizations continue to emphasize data security and compliance, they need ADM providers capable of implementing robust security frameworks and managing risks,” said Heiko Henkes, managing director, ISG Provider Lens Research. “One new capability these partners should be adding to their portfolios is the ability to integrate AI and ML tools into application performance monitoring to check for anomalies and predict quality-of-service levels for new applications.”

ISG has distributed surveys to more than 125 ADM service providers serving the global ADM services market. Working in collaboration with ISG’s global advisors, the research team will produce six quadrants representing the AI-driven ADM services the typical enterprise is buying based on ISG’s experience working with its clients. The six quadrants are:

• Application Development Outsourcing, evaluating providers offering AI-based application development outsourcing services across various technologies and industry verticals. Providers in this space often possess extensive consulting expertise as well as strong partnerships to implement methodologies such as CI/CD pipelines, AI integration and DevOps.

• Application Development Projects, assessing providers offering application development services using AI. These providers offer tools, accelerators and solutions that ensure rapid time to market, identify areas for cost optimization and improve clients’ operational efficiencies.

• Application Managed Services – GSIs, studying global system integrators (excluding niche specialists) that manage defined application portfolios, specifically for applications in production. Services in this space include technical functions such as application support, enhancement, platform upgrades, security management, bug fixes and troubleshooting.

• Application Managed Services – SIs, evaluating providers offering services to clients with expertise in specific technologies or industries. Unlike GSIs, these specialist providers offer deep expertise in certain industry segments, focusing on delivering high-impact services leveraging their in-depth knowledge.

• Application Quality Assurance, assessing providers offering QA services encompassing assessments, design, implementation and managed services. These services include conventional and GenAI-driven testing strategies, along with AI-driven predictive analytics to identify bugs or defects and determine the level of business process optimization achieved.

• Continuous Testing Specialists, studying providers whose services ensure that new features and code changes do not introduce regressions or disrupt existing functionality. These providers offer robust testing strategies, scope, methods and scripts for determining the most effective approach for testing, including employing AI-driven automation for execution.

Geographically focused reports from the study will cover the global AI-driven ADM services market and examine products and services available in the U.S., Brazil, Europe and the Asia Pacific region. ISG analysts Akhila Harinarayan (U.S.), Pedro L. Bicudo Maschio (Brazil), Oliver Nickels (Europe and Germany) and Maharshi Pandya (Asia Pacific) will serve as lead authors of the reports.

A list of identified providers and vendors and further details on the study are available in this digital brochure. Companies not listed as AI-driven ADM service providers can contact ISG and ask to be included in the study.

All 2025 ISG Provider Lens™ evaluations feature expanded customer experience (CX) data that measures actual enterprise experience with specific provider services and solutions, based on ISG’s continuous CX research. Enterprise customers wishing to share their experience about a specific provider or vendor are invited to complete this online survey. Participants will receive a copy of this report in return for their feedback.

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.

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Today’s enterprises are seeking partners with specialized skills that enable them to deploy AI-driven solutions for streamlining application development activities such as requirements analysis, design and coding.