Provider Expansion Aids Enterprises’ ADM Maturity in Brazil
More enterprises in Brazil are outsourcing application development and maintenance (ADM) after work restrictions imposed by the COVID-19 pandemic allowed service providers to leverage their experience in distributed work to expand their operations around the country, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2022 ISG Provider Lens™ Next-Gen ADM Services report for Brazil finds the pandemic accelerated the global adoption of next-generation ADM technologies and practices as enterprises were forced to learn how to collaborate and deliver applications under remote work requirements. Outsourcing companies were more prepared for this change, and enterprises with in-house application teams recognized that outsourcing would give them more flexibility to respond to disruptions like the pandemic.
In Brazil, outsourcing providers used social distancing requirements as an opportunity to develop new methods of hiring and discovering additional talent outside the country’s major technology centers, the report says.
“Service providers in Brazil stepped up quickly to meet the growing demand for outsourcing, to the benefit of enterprises,” said Richard Chang, director at ISG. “IT departments were struggling just to provide the infrastructure for remote work, so learning how to collaborate and deliver applications under the new conditions was even harder.”
While application delivery centers in Brazil had been concentrated in São Paulo, Belo Horizonte and remote centers in six other states, the shift to social distancing opened up hiring throughout the country, ISG says. During the pandemic, service providers added employees in all 26 states.
The pandemic led to rising attrition that intensified an IT skills shortage in Brazil, as in other regions, but that wave crested last year, and the talent crunch is now more manageable, the report says.
Outsourcing providers are helping companies in Brazil leverage modern approaches to application development, including Agile methodologies, ISG says. Enterprises in Brazil have reached maturity in their use of Agile development projects, with mobile applications and customer experience acting as major drivers of adoption.
“Companies in Brazil use Agile projects as levers for digital transformation,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They want reliable processes that help them deliver applications quicker, including DevOps and test automation, and service providers enable them to integrate these capabilities.”
The report explores a wide range of ADM trends in Brazil, including the growing use of AI in application managed services, the move from effort-based to outcome-based contracts and the prospects for a mature quality assurance market based on pre-set tools and frameworks.
The 2022 ISG Provider Lens™ Next-Gen ADM Services report for Brazil evaluates the capabilities of 52 providers across five quadrants: Agile Application Development Outsourcing, Agile Application Development Projects, Application Managed Services, Application Quality Assurance and Continuous Testing Specialists.
The report names Capgemini, Tech Mahindra and Wipro as Leaders in three quadrants each. It names Accenture, Globant, Iteris, NTT DATA, Softtek and Stefanini as Leaders in two quadrants each. Base2, BRQ, CI&T, Compass, FCamara, GFT, Inmetrics, Prime Control, SEMPRE IT, Sofist, Thoughtworks, T-Systems and Yaman are named as Leaders in one quadrant each.
In addition, Qintess and Vericode are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
Customized versions of the report are available from Inmetrics, Iteris, Prime Control, SEMPRE IT, Sofist and Vericode.
The 2022 ISG Provider Lens™ Next-gen ADM Services report for Brazil 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., Canada, 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.
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 800 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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