Generative AI for the Future of Application Services – Propelling Productivity and Reshaping Cost Paradigms
Market Report

18 Jan 2024
by Yugal Joshi, Ankit Gupta, Mohammed Riyaz

Despite generative AI’s decades-long exploration into generating new content, some industry leaders express optimism, while others still navigate the uncharted waters of its potential and grapple with ethical complexities. As enterprises adopt generative AI in innovative ways, we explore the dilemmas they face in balancing productivity gains with creativity enhancement. The tradeoff between individual performance gains and collective creativity loss emerges as a vital consideration, with generative AI offering varying time savings in development tasks. The analysis delves into the nuances of task complexity and developer experience, revealing that complex tasks and experienced developers may benefit less from generative AI.

In this report, we explore the multifaceted world of generative AI, tracing its historical roots and examining the current landscape marked by optimism, ethical considerations, and advances in technology. Additionally, the report addresses the promises and concerns associated with generative AI in IT services, emphasizing the need for a balanced approach that combines technology with human involvement to minimize challenges. Successful generative AI adoption relies on well-structured enterprise governance, fostering ongoing innovation and enabling the scaled adoption of generative AI initiatives across the enterprise.

In this report, we provide a nuanced understanding of the generative AI landscape, offering insights into its historical context, current challenges, and the transformative potential it holds for innovation across industries.

Scope

  • All industries and geographies
  • The report is based on Everest Group’s annual RFI process and an ongoing analysis of the IT services market

Contents

In this report, we examine:

  • Generative AI adoption across the application life cycle and the Application Management Services (AMS) value chain
  • The importance of fostering ongoing innovation and enabling the scaled adoption of generative AI initiatives across enterprises
  • Integrating technology with human involvement to minimize challenges
  • The correlation between technology’s varying time savings in development tasks and task complexity, along with developer experience

Membership(s)

Application Services

Outsourcing Excellence

 

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