Everest Group Report on Agile and DevOps in Application Services

By CIOReview | Wednesday, July 29, 2015
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DALLAS, TXEverest Group, consulting and research firm,  recently released the result of the research on Agile and DevOps as part of application service suggests that moving from an Agile model to DevOps is the single most important trend in application services.  However, most enterprises are focusing on adopting the DevOps model using internal resources rather than service providers. 

DevOps enables a unified approach to enterprise software development and operation administration that strives for faster development and reduced production risk whereas Agile enables the enterprise to produce higher quality software that fulfill the user needs with speedy release cycle. Implementing DevOps increases speed and innovation requires Agile Development.

According to Everest Group Annual Research, 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. Even after enterprises adopting Agile method they are still lagging behind in speed and cost effectiveness. This is the challenge DevOps is expected to address and engage in developing, testing and managing application. Some other key findings includes:

· Stand-alone application services deals dominated the market with 59 percent share in new signings. Bundling of IT towers with Business Process Services remained muted with only 4 percent of deals witnessing it.

· Enterprises focused on output and business outcomes from application services, with 58 percent of engagements based on the “non-labor” model.

· The Banking, Financial Services and Insurance (BFSI) industry led the application services deal activity (30 percent share).

· North America continued to witness a decline in average deal size; European clients signed contracts of larger value than global peers; and clients across the Asia Pacific (APAC) region witnessed significant demand contraction, with contract sizes approximately 35 percent lower than the global average.

“Enterprises and service providers need to collaborate together and undergo an internal reorganization if they aspire to leverage the concepts of the DevOps model,” said Yugal Joshi, Practice Director, Everest Group.