Introduction

Enterprises are rapidly adopting Agile methods for application development. However, they are also realizing that in spite of application development becoming Agile, they are unable to deliver applications faster or within budget to their customers. DevOps models are expected to address this problem. DevOps will involve all the stakeholders engaged in developing, testing, and managing applications from the beginning of the application lifecycle. This will reduce time-to-market, cost of quality, and process efficiencies.

Everest Group’s annual research indicates that despite the willingness of the enterprises to deploy DevOps model, they are unsure of the capabilities that service providers possess in order to be a partner in this journey. In addition to that, the research also provides fact-based perspectives on buyer adoption by geography, industry, and revenue size. It analyzes major trends that are shaping the application services market and the outlook for the next year. It also sizes the IT services market in terms of application services and consulting services.

Scope

• IT service market size (split across applications, consulting, infrastructure service, 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 (move from Agile to DevOps and the challenges)
• Outlook for 2015-2016

Contents

This annual research deep dives into the application services landscape. It provides data-driven facts and perspectives on the overall market. The research covers AS adoption trends, demand drivers, next-generation services such as, Agile and DeveOps. The research analyzes buyer challenges, trends shaping the market, and also provides an outlook for 2015-2016 for the broader IT services as well as application services market.

For example, the section on “AS Overview” analyzes the following:

• Deal trends (new vs. renewals)
• Deal size and duration
• Scope of services (e.g., application development, maintenance, and consulting)
• Pricing trends
• Delivery locations