Application Services - Annual Report 2017: Artificial Intelligence (AI) in SDLC? There is a Long Journey Ahead

21 Apr 2017
by Chirajeet Sengupta, Yugal Joshi

Artificial Intelligence (AI) is no longer a fringe fantasy-riddled technology; it has witnessed high interest from enterprises, technology majors, and service providers. Its growth from basic AI to an enabler of breakthrough innovation is sparking interest from all industry participants. AI and its allied techniques will profoundly impact application services in the way applications are developed, tested, and maintained.

Everest Group’s annual research indicates that though enterprises are taking small steps to adopt AI in their IT services environment, it has not undergone significant progress. AI techniques present significant opportunities in the application services landscape and enterprises can leverage these techniques to completely transform application services functions. The research also provides fact-based analysis of buyer trends by geography, industry, and revenue size. It also analyzes major trends impacting the application services market and provides an outlook for the year.


  • IT services market size (split across applications, consulting, & infrastructure services, geography, and industry verticals)
  • Market share of leading IT service providers in applications, consulting, and infrastructure services
  • Application Services (AS) buyer adoption trends across geography, industry verticals, and revenue size
  • Key trends shaping the AS market (scope and potential of AI in application services)
  • Outlook for 2017-2018


This annual research delves into the application services landscape to provide data-driven facts and perspectives related to the market. It covers AS adoption trends, demand drivers, and potential of AI in the enterprise landscape. The research also analyzes market trends across geographies, industries, and buyer sizes, and provides an outlook for 2017-2018. For instance, the section on “AS Overview” analyzes the following:

  • Average ACV trends
  • Deal duration trends
  • Contract type and pricing model trends
  • Deal trends (new deals vs. renewals)
  • Scope of services (e.g., application development, maintenance, and consulting)

Membership (s)

Application Services


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