ISG to Evaluate Leading Providers of AI-Driven ADM Services for Enhanced Application Development
The Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm specializing in AI, has announced the launch of a groundbreaking research study aimed at evaluating service providers integrating generative AI into their application development and management (ADM) portfolios. This initiative comes amid a massive transformation in the ADM sourcing market, driven by the widespread adoption of artificial intelligence. The findings will be published in a series of comprehensive ISG Provider Lens™ reports titled AI-Driven ADM Services, set for release in October 2025.
These reports will provide geographically focused insights into service providers that are rapidly enhancing their capabilities in generative AI (GenAI) and intelligent agents to deliver measurable business outcomes for their clients. For enterprise buyers, these reports will serve as a valuable resource for assessing current vendor relationships, exploring new partnerships, and understanding the latest offerings in the market. Meanwhile, ISG advisors will leverage the data to recommend top-tier providers to their buy-side clients.
Why AI-Driven ADM Services Matter
In today’s fast-evolving digital landscape, enterprises are increasingly seeking partners with specialized skills to deploy AI-driven solutions that streamline application development activities. These solutions encompass requirements analysis, design, coding, testing, and quality assurance (QA). By leveraging AI-enhanced tools, businesses can prioritize application features based on historical user data and insights, ensuring that the most impactful functionalities are developed first. Additionally, AI-enabled testing and QA frameworks improve software reliability through intelligent test case generation and predictive quality assurance.
“As organizations increasingly emphasize data security and compliance, they require ADM providers capable of implementing robust security frameworks and managing risks,” said Heiko Henkes, Managing Director of ISG Provider Lens Research. “A key emerging capability is the integration of AI and machine learning (ML) tools into application performance monitoring, enabling providers to detect anomalies and predict quality-of-service levels for new applications.”
Methodology and Key Quadrants
To conduct this study, ISG has distributed surveys to more than 125 ADM service providers operating in the global ADM services market. Working closely with ISG’s global advisors, the research team will produce six quadrants representing the AI-driven ADM services that enterprises typically seek. These quadrants are designed to reflect the diverse needs of organizations, from large-scale application development outsourcing to specialized quality assurance services. Here’s a breakdown of the six quadrants:
- Application Development Outsourcing: This quadrant evaluates providers offering AI-based application development outsourcing services across various technologies and industry verticals. These providers often excel in consulting expertise and have strong partnerships to implement methodologies like CI/CD pipelines, AI integration, and DevOps.
- Application Development Projects: Focused on providers delivering application development services using AI, this quadrant highlights tools, accelerators, and solutions that ensure rapid time-to-market, cost optimization, and operational efficiency improvements.
- Application Managed Services – GSIs: This section examines global system integrators (excluding niche specialists) that manage defined application portfolios, particularly for applications in production. Services include technical functions such as application support, enhancements, platform upgrades, security management, bug fixes, and troubleshooting.
- Application Managed Services – SIs: Unlike GSIs, specialist integrators (SIs) offer deep expertise in specific industries, focusing on high-impact services tailored to unique client needs. This quadrant evaluates providers with niche knowledge and capabilities.
- Application Quality Assurance: Assessing QA service providers, this quadrant covers assessments, design, implementation, and managed services. It includes conventional and GenAI-driven testing strategies, as well as AI-driven predictive analytics to identify bugs or defects and optimize business processes.
- Continuous Testing Specialists: This quadrant studies providers ensuring that new features and code changes do not introduce regressions or disrupt existing functionality. These providers offer robust testing strategies, methods, and AI-driven automation for seamless execution.
Geographical Focus and Expert Insights
The geographically focused reports will analyze the global AI-driven ADM services market, with detailed examinations of products and services available in key regions, including the U.S., Brazil, Europe, and the Asia Pacific. Leading 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. Their expertise ensures a nuanced understanding of regional market dynamics and provider capabilities.
Expanded Customer Experience Data
All 2025 ISG Provider Lens™ evaluations will feature expanded customer experience (CX) data, providing deeper insights into enterprise experiences with specific provider services and solutions. This CX data is based on ISG’s continuous research efforts, ensuring accuracy and relevance. Enterprise customers interested in sharing their feedback about a specific provider or vendor can complete an online survey. As a token of appreciation, participants will receive a copy of the report.
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.
