Global Application Lifecycle Management Market

 

The market study covers the present scenario and growth prospects of the global application lifecycle management market for 2017-2021. The report also lists cloud-based ALM and on-premises ALM as the two major segments based on deployment models. The cloud-based ALM segment accounted for 58% of the market in 2016.

Request a sample report: http://www.technavio.com/request-a-sample?report=57071

Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.

Technavio ICT analysts highlight the following three market drivers that are contributing to the growth of the global ALM market:

  • Use of ALM provides improved cost saving
  • ALM drives productivity and quicker time to market
  • ALM helps focus on real-time decision-making

Use of ALM provides improved cost saving

ALM helps organizations reduce costs and provide on time services to markets. It also enables the centralized management of project portfolios. Centralization allows organizations to enhance the decision-making process and thereby improve the performance of the organization, eliminate duplication of effort, reduce operating costs, and maintain multiple data centers.

These services also help organizations increase their savings, as it gives the IT managers and chief information officers (CIOs) visibility of application cost and associated support that is required to get back the expected ROI.

According to Amit Sharma, a lead analyst at Technavio for enterprise application research, “ALM makes it possible to track developments in various projects at a rapid pace, which enhances the processing speed and response time. The service can also facilitate rapid identification of issues, which helps organizations avoid redundant or poor IT investments.”

ALM drives productivity and quicker time to market

ALM helps organizations to achieve higher productivity by providing end-to-end performance report. ALM helps speed up the development and test cycles, which helps in quicker time to market. The functions in organizations are fully automated and streamlined when ALM software package is used, resulting in rapid designing, delivering, and deploying of the software.

“Furthermore, ALM helps to centralize the management, attain real-time visibility into the application delivery process, and implement consistent workflows and processes across the application lifecycle, thereby reducing the duplication of effort between projects,” says Amit.

ALM helps focus on real-time decision-making

ALM helps monitor business application management services. It provides flexible, integrated, and real-time decision-makingsupport for those in the top management, which, in turn, helps to improve responsiveness across an organization. Diverse elements of multinational environments, such as language, currency, and accounting standards, are covered in a single application management service.

The service provides for better analysis and planning capabilities. It enables comprehensive and integrated management of related businesses and corresponding data. This integration allows the complete deployment of various kinds of decision-making support systems and project management functions.

Source: businesswire.com-Global Application Lifecycle Management Market

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Gartner Positions Infosys as a ‘Leader’ in Magic Quadrant for Oracle Application Services

Infosys (NYSE: INFY), a global leader in consulting, technology, outsourcing and next-generation services today announced that Gartner, Inc. has positioned Infosys as a ‘Leader’ in its Magic Quadrant for Oracle Application Services in Europe, the Middle East and Africa (EMEA) and North America.

The report evaluated 16 vendors in EMEA and 20 in North America for the full-life cycle of Oracle application services, spanning project-based implementations and multiyear application management services (AMS). Gartner analysts evaluated service providers for their ability to deliver a comprehensive set of implementation and management services across the Oracle portfolio of products for EMEA and North American clients. Infosys was positioned highest for its ability to execute in EMEA.

An Oracle Cloud Elite partner, Infosys drives innovation and new opportunities for its clients with next-gen digital technologies so they can achieve higher efficiencies and increased customer engagement.

Quote:

Ravi Kumar, President and Deputy Chief Operating Officer, Infosys

“We believe that being identified as a Leader in Gartner’s Magic Quadrant validates our core strength of delivering value to our customers leveraging our IP and the best-of-breed technology solutions, and our commitment to developing a comprehensive set of Oracle application management services across the Oracle product line. Infosys works closely with Oracle to rethink and redesign application services by incorporating innovation and agility. We are gratified to see Gartner’s recognition of our leading work in this critical area.”

Links:

Gartner’s Magic Quadrant for Oracle Application Service Providers, EMEA

Gartner’s Magic Quadrant for Oracle Application Service Providers, North America

Source: prnewswire.com-Gartner Positions Infosys as a ‘Leader’ in Magic Quadrant for Oracle Application Services

Protectionism and Outsourcing: Brace for Impact

The new U.S. administration has made it clear that protectionist policies and immigration reform are important priorities.

The new U.S. administration has made it clear that protectionist policies and immigration reform are important priorities. As a result, organizations dealing with strategies regarding the use of offshore resources have been carefully watching what transpires, from campaign promises and press conferences to the President’s tweets. The question is, what do these potential policy changes mean for organizations using third-party services, particularly third-party offshore service providers? What are some of the fundamental things they should be thinking about as they try to plot out what they should be doing over the next 6-18 months?

For one thing, the new administration’s efforts related to limitations for H-1B visas, which allow U.S. employers to temporarily employ foreign workers in specialty occupations, has already impacted offshore outsourcing providers, says Dave Brown, Global Lead for KPMG’s Shared Services & Outsourcing Advisory practice. “It really limits them in being able to place qualified resources into the U.S. job market and to build out their capabilities with a quality solution,” he says.

In addition, there is the issue of a minimum threshold or salary for H-1B visas — increasing it drives up the cost base for service providers. “It puts pricing pressure on them when they’re trying to sell more business to U.S. companies,” says Brown.

Protectionist-based tax reform, where products developed outside the U.S. and imported may face heavy taxes, are also being closely observed, since there is a concern that third-party outsourcers providing services back to the U.S. for large corporations will be part of a “next wave” of new taxes. “Companies need to be aware of their outsourcing contracts and what impacts those services taxes could have,” says Brown.

Finally, as immigration laws change, not only does the restriction of H-1B visas have an impact on service providers sending employees to the U.S., but also the service providers themselves use the ability to leverage an H-1B visa to attract employees into their company. “Potential employees expect they can join the firm in an offshore location and be relocated to the U.S. for a period of time to increase their skills, to broaden their knowledge base and to provide them with an experience of working in the U.S.,” says Brown.

In this age of outsourcing uncertainty, Brown cites three important areas that organizations should investigate and be aware of as they develop their outsourcing strategies and policies:

1. The service provider’s global sourcing model and risk profile.

Organizations should look carefully at their outsourcing contracts, to identify whether there are termination rights for partial opportunities, for example, or what happens if automation is applied, says Brown. “If the scope of the work does decrease due to policy changes, what impact that does have on the contractual term?” The business needs to look at the resource mix and consider any tax implications that may come by setting up some of these contractual agreements with service providers. In addition, it’s important to assess the risk profile of the outsourcing provider to get a better handle on the potential impacts on the organization’s sustainability if some of these immigration and tax rules come through.

2. Automation opportunities related to outsourcing contract work.

Automation may increase in popularity based on changes in protectionist policies, says Brown, since it may affect what you may already have outsourced to a third party — by eliminating some or all of the work altogether. “The benefits of the original contract to move work to a third party may have been that they were moving it to offshore locations and applying some labor arbitrage savings, but automation kind of negates that so it almost becomes a wash” says Brown. “So why wouldn’t you take the remaining resources and bring them back onshore and build out a better succession plan, retool, reskill the individuals so that you can actually take advantage of creating jobs in the U.S. and really leveraging the automation tools that are there?”

3. The power of social media.

As organizations continue to follow President Trump’s comments and others around social media related to changes protectionist and immigration policies, there is clearly a ripple effect and reaction across marketplaces. This means being prepared for anything since things can change at any moment, says Brown. “Companies need to consider what this all means to them and remain aware, because at some point some of the words floating around in social media will make it into legislation and potentially become a bill,” he explains. “If that does happen, by that time if you react it’s going to be too late.”

Businesses should prepare their outsourcing strategies now

“Be prepared” is not simply a Boy Scout motto. It should be a motto for all organizations looking to react appropriately to changes in immigration and tax legislation as they affect outsourcing contracts, says Brown. However, many companies are not putting themselves in a position to deal with changes in an agile way. “Firms are in a position to see that there will be an impact, but they’re not necessarily preparing themselves and creating a strategy,” he says.

For example, there are unaddressed issues, such as if businesses do need to bring jobs back to the U.S., how will they be able to find the resources to do that? “We talk about the war for talent and how challenging it is, and it’s always in our top five concerns of companies to find the right talent,” says Brown. “I think companies aren’t prepared for the ability to find these resources if they were to bring them back onshore. There is an opportunity to do so but I don’t think they realize the full breadth of what it means to bring jobs back from a third party.”

When doing this kind of talent assessment, he adds, it’s essential to look at the supply pool and to make sure the organization is comfortable not only attracting the talent they need but retaining them and continuing to build a career path for them. “That would be what I’d consider the biggest gap in the analysis we’re seeing today,” says Brown.

Source: cio.com-Protectionism and Outsourcing: Brace for Impact

Image credit:  istock

The State of Outsourcing and Operations 2017, Part 2

The Global Business Services Evolution: Centralization and automation up, outsourcing and offshoring down

As organizations struggle to keep up with the disruptive shifts of digital transformation, service delivery models are evolving fast toward centralization and greater use of automation, according to the HfS/KPMG 2017 State of Outsourcing and Operations.

While there is growth across the board in all types of service delivery models, the study found that there is a drive toward full Global Business Services (GBS) and a spectrum-wide move away from decentralized models. For example, 11% of organizations are already operating under a GBS structure, while 20% are moving in that direction with a global shared services/outsourcing model. Only 16% of organizations are functioning under a fully decentralized structure.

“Companies are clearly re-examining the ways they go to market with their delivery models, because they must,” says KPMG’s Stan Lepeak, Head, Market Research at KPMG Global Management Consulting —disruptive technology is having such a significant impact on the front, middle and back offices. Organizations realize they need to start functioning with a “One Office” operating model, which hones in on the needs and experiences of the customer central to the entire business operation, while old barriers between corporate operations and functions are eroded and the constraints of legacy IT are limited. With “One Office” operating models such as GBS, organizations can begin to integrate not just the processes but also technology and data sets.

This transformation is seen by nearly all — a whopping 98% — of CEOs, who are beginning to use automation as a complete set of non-sequential levers that all integrate with one another. “That’s the new norm,” says Lepeak. “As things change so quickly, companies can’t afford the time to have fragmented operating models — it’s encouraging to hear that GBS-established organizations are taking a look at expanding their portfolio of services toward digital solutions that are very focused on the customer.”

Employment transformation is a big part of making the shift to GBS or other centralized operating models happen, as the nature of work — not necessarily the number of jobs — changes. “There are training requirements just to replace the shortages that are happening today, let alone new jobs that are being created,” Lepeak adds. “Our GBS-mature clients are focusing on making sure the entire back office is transformed in terms of interacting with external partners such as third-party service providers, and internally with groups across the major function of finance, IT, sourcing and procurement, and human resources..”

Robotics process automation (RPA) will shift the look of GBS operations

GBS is on the cusp of a major leap toward integrated service delivery models, with lower-value services outsourced and an increasing focus on analytical, judgment and expert services. “In over 300 GBS maturity assessments we’ve done for clients, it’s clear that getting really good at GBS is hard — especially if you have complicated, global, diverse underlying IT systems,” says Lepeak. “We see many organizations make some early progress towards greater GBS maturity but then often hit a wall.

Robotics process automation (RPA), he explains, is a great opportunity for firms to move toward GBS maturity — so they don’t have to have as many locations, for example. “This is going to be key and ultimately change what GBS operations look like,” he says.

This automation disruption and evolution toward integrated GBS has also accelerated, adds Lepeak, so that the journey to a centralized operating model is quicker than it has ever been — which requires a 360-degree view of the entire operating model environment. “Organizations cannot afford to view this in isolation and simply look to apply technological disruptors to the current environment,” he says. “They do need to look holistically at the entire picture because the pace will continue to change, and once they have implemented something, they will have to change again.”

The changing use of outsourcing and offshoring

Two years ago, the State of Outsourcing and Operations study found that clients were increasing investments in offshore use for outsourcing — Finance & Accounting was poised to rise 22%, for example, while HR was predicted to rise by 13% and IT/network infrastructure support by 23%. Today, however, there is a much flatter outlook in all of those areas. Finance & Accounting, in fact is predicted to decrease by 4% and HR by 3%. There were similar results in offshore use for shared services.

The reason for the decline? According to KPMG’s Dave Brown, Global Lead, Shared Service & Outsourcing Advisory, it is because the hype of RPA and cognitive is dying down — as the reality of it increases. “People who invested over the past two years in a proof of concept are now deploying RPA solutions, mostly on the business process side such as finance, accounting, HR and procurement,” he says.  “Proof of concepts have now started to roll out into production environments and essentially take work out of offshore locations, whether third party or in their captive centers.”

As a result, companies are starting to look at their offshore strategies and decide whether they need to go forward with those efforts. “The confidence level in RPA has increased; it’s not just about hype anymore,” says Brown.

In addition, companies are no longer considering simply a one-off RPA solution. Cognitive solutions are becoming more mature, with more integrations of RPA with machine learning and AI. “There is starting to be more of a full suite of service offerings around that play,” he says. “We’ve joked over the years about hype vs. reality — I think the reality is really starting to dawn on senior executives that another lever is driving those costs out of organizations.”

The bottom line? According to the State of Outsourcing and Operations 2017, there’s no doubt that the shared services and outsourcing industry is on the cusp of massive change as the entire outlook of operations — from the front-office to the back — evolves into a centralized, “One Office” model. But this is not about jobs going away. Instead, it is about a reevaluation of the nature of work. Organizations must begin to embrace the digital and intelligent automation tools available and write off legacy options. The future of the industry demands it.

Source: cio.com-The State of Outsourcing and Operations 2017, Part 2
Image credit:  istock

Cognitive computing technologies still deliver mixed results

Despite substantial improvements in the utility of cognitive computing technologies, it’s still too early for enterprises to go all in on the trend, and to base their business models entirely around artificial intelligence.

Of course, that doesn’t mean some organizations aren’t trying. At the Gartner Data & Analytics Summit 2017 in Grapevine, Texas, analyst Alexander Linden said, “We’re seeing companies saying ‘We are an AI company.’ Some are even saying they’re an AI-first company.”

This surely delights IBM, whose marketing for its cognitive platform Watson (which it ambitiously claims can think like a human) focuses on convincing businesses the time is right to become a cognitive business.

Of course, any time a disruptive new technology comes on the scene, entrepreneurs and enterprising business executives will look for ways to exploit that technology. The Holy Grail is using new technology to create previously nonexistent business models.

Uber took advantage of the ubiquity of mobile data and GPS services to create a new way for people to find rides. That innovation earned the company a couple years of virtually competitor-free growth, and an undisputed lead over the competitors who have since come along. Everyone is now wondering what kind of new business models cognitive computing technologies will spawn.

Google might be one of the first companies to get there. It was nearly one year ago that CEO Sundar Pachai announced in a letter that the company would pursue an AI-first strategy. But, even with the advances in cognitive computing tools that we’ve seen in the 11 months since his letter was published, it doesn’t make sense for the average enterprise to follow Google in this direction.

The reason is that any sort of general-purpose AI is still a long way off — despite what some marketing campaigns might say. What we have right now are tools that can effectively execute single tasks. This means that, while it may be possible for enterprises to turn some specific jobs over to the algorithms, it’s hard to imagine any business, beyond a large information-based company like Google, benefitting from it in a broad way.

That’s one of the biggest takeaways from a new report out of MIT’s Center for Information Systems Research. It says that narrowly defined tasks are the best use cases for today’s cognitive computing tools. Good use cases today include things like banks evaluating customer creditworthiness, healthcare providers conducting insurance audits and accounting firms doing general audits.

But the report, “Five Things You Should Know About Cognitive Computing,” states that any situation with high levels of uncertainty, rapid change or creative demands is not where AI thrives. The report recommends that enterprises proceed incrementally, applying cognitive computing technologies to areas where there are already strong business rules in place to guide algorithms, and large volumes of data to train the machines.

Not every business meets those conditions — certainly, few businesses have those conditions across the enterprise. So chasing the notion of becoming a cognitive business makes little sense right now.

Source: searchbusinessanalytics.techtarget.com- Cognitive computing technologies still deliver mixed results

Why Hiring Remote Teams Will Be a Top Trend for 2017

Outsourcing. It’s been a buzzword for years. When business owners need tasks and projects accomplished and don’t have the staff, they outsource – everything from building websites to recruiting personnel.

The latest trend for IT projects and one that promises to grow almost exponentially throughout 2017 is outsourcing software development and using offshore developers in the process.

What To Expect

Recently, Deloitte released the results of a survey on outsourcing that provided a pretty comprehensive look at who is outsourcing, what is being outsourced, and the growth of outsourcing in 25 separate sectors. Sectors ranged from consumer and industrial products to finance, healthcare, IT and media. Respondents included leaders of company legacy functions, including IT, HR, finance, etc.

In terms of what was outsourced IT had the highest percentage – 72%. Outsourcing software development has become a popular and increasingly utilized activity for businesses.

The report also noted that in every sector surveyed, outsourcing has increased an average of 20% between 2014 and 2016. When respondents were asked if they would continue to increase their use of outsourcing, the clear majority said yes.

Respondents also commented that, in the beginning, both sides were unsure about how offshore team management should work and the types of relationships that should be developed between a business and an outsourcer.

As outsourcing has matured, however, best practices have been hammered out, and the path to success is on strong footing. Now, there is enough of a comfort level so that business leaders are confident about how to hire a remote development team and how to move through the project process successfully.

Reasons to Hire a Remote Development Team

One very important element of the Deloitte survey were the reasons given for why to hire a remote development team.

  • 59% stated it was a “cost-cutting tool.” Hiring the right team means that permanent staff does not have to be employed to provide the desired software development. And, going offshore taps into exceptional expertise at a much cheaper price. Hiring in-house is hugely expensive and not just in terms of salary. Health insurance costs alone can be exorbitant.
  • 57% stated that outsourcing allowed current in-house staff to focus on the core aspects of the business. Consider CRM software development, for example. While a small in-house IT team might have to spend months totally focused on developing such an app, other IT functions, such as logistics, inventory control, and project management, not to mention upgrading databases, etc., will take a back seat and can impact the business’s bottom line. This was the second among the most important reasons to hire remote workers.
  • Another 37% said that using a remote development team solved capacity issues. Other reasons included the need to enhance the quality of company services as quickly as possible, and the critical nature of business needs that required expert and relatively rapid “fixes.”
  • “Access to intellectual capital” was a reason for 28% of the respondents. They simply had come to understand that there is amazing expertise all around the globe and see great benefits in tapping into it.

The Other Elephant in the Room

One thing that legacy function leaders have struggled with is just how to hire a remote development team. After all, HR manager is not a techie. So how do they go about finding a development team? And, after that, how does one manage a programming team when he is not himself a techie? Add to that the fact that this is a remote team, possibly halfway around the globe.

The important thing to remember is that you are not the first person to “come to this dance.” Many are successfully employing and managing remote workers and doing so very successfully. There is literature with best practices outlined; there should be conversations with others who have successfully outsourced development work. The resources are there, so that legacy managers can learn and ultimately become knowledgeable of the process of employing a remote team. Some of these “best practices” include:

  • Knowing exactly what you want an app or piece of software to do. You don’t have to be a techie to identify these things.
  • Researching the background of a firm you are considering. How much experience do their developers have with the development of the type of software you want?
  • Checking references of firms you are considering
  • Ensuring that any remote team will have a project manager with whom you will communicate on a regularly scheduled basis and that video conferencing with the entire team will also occur.
  • Getting legal advice on the terms of the contract you and the remote team develop to ensure that your interests are protected.
  • Establishing timelines for an MVP and the additional features that will be added.
  • Ensuring that you will have the after-development training and the support you need when there are issues and glitches.

These are just some of the considerations once the decision to employ a remote development team is made.

Remote Development Outsourcing is Not Going Away

If the Deloitte survey showed nothing else, it did come away with some very basic conclusions about remote outsourcing. In our increasingly global workplace, businesses have found that they can find the development expertise they need in faraway places and that technology allows hiring and managing that expertise successfully. They understand the advantages to be gained, and all respondents indicated that they will be increasing their outsourcing in the next and future years. Because these survey respondents come from virtually every sector of the economy, moreover, we can conclude that outsourcing will be a pervasive and permanent practice.
Read more at http://www.business2community.com/human-resources/hiring-remote-teams-will-top-trend-2017-01798072#DJ1H6sADsdGHxklj.99

Source: business2community.com- Why Hiring Remote Teams Will Be a Top Trend for 2017