GenAI Accelerates App Development in Brazil

SÃO PAULO--(BUSINESS WIRE)-- Enterprises in Brazil have begun broadly adopting generative AI (GenAI) for application development and maintenance in 2024, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III ), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Next-Gen ADM Services report for Brazil finds that GenAI has become a core part of application services, pushing Agile methodology into the background. Organizations in Brazil are willing to invest in new technologies for higher quality and efficiency, the report says. They are using GenAI to help IT departments deliver better applications and business functions in less time without increasing budgets. While it adds new tasks and may not cut the total cost of development, GenAI is already delivering gains in productivity.

"Companies in Brazil are constantly working to reduce time to market on the applications they create," said Shafqat Azim, ISG partner and Americas lead, Digital Transformation. "They are beginning to recognize GenAI's potential to help them deliver better code more quickly."

Advanced GenAI features that have emerged this year could allow enterprises to significantly reshape development processes, ISG says. For example, end users can use a voice interface to tell a GenAI tool what a proposed application should do, then have the tool document the requirements and ask more questions to complete the software's specifications. In the coding phase, a programmer can write prompts and have GenAI write the code. GenAI can also inspect code and perform functional testing.

However, GenAI does not replace humans in defining what software does for users or how it is created, including program flow, logic, architecture and business rules, the report says. GenAI requires human review to check for hallucinations and deviations from best practices. As a result, the technology does not pose a threat to project managers, business analysts, developers and other professionals with high-level expertise.

Most Brazilian companies that have embarked on GenAI projects with service providers demand a proof of concept to understand the business value and go through long decision-making processes, ISG says. They consider how to comply with restrictions on the use of GenAI, which encompass privacy, security, compliance, IP, legal responsibility and other issues.

With the emergence of GenAI, more enterprises in Brazil are expanding their use of application managed services beyond cost-effective maintenance to application modernization, ISG says. GenAI can accelerate the process of refactoring legacy code to take advantage of the latest technologies and enhance agility.

"Brazilian companies planning application development projects seek providers that can deliver the power of GenAI and data analytics," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "To meet their demands, leading providers in Brazil are investing in these types of expertise."

The report also examines other next-generation ADM trends in Brazil, including growing demand for automated QA services and the emergence of proprietary GenAI solutions for customized, end-to-end test automation.

For more insights into the top ADM challenges facing Brazilian enterprises, and ISG's advice for leveraging GenAI to improve speed and agility, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Next-Gen ADM Services report for Brazil evaluates the capabilities of 60 providers across five quadrants: Agile Application Development Outsourcing, Agile Application Development Projects, Application Managed Services, Application Quality Assurance and Continuous Testing Specialists.

The report names Capgemini, GFT and Wipro as Leaders in three quadrants each. It names Accenture, Compass UOL, DXC Technology, Softtek and Stefanini as Leaders in two quadrants each. Base2, BRQ, CI&T, e-Core, FCamara, Globant, iLab (SVLabs), Inmetrics, Keeggo, NTT DATA, Objective Group, Prime Control, Sempre IT, TCS, Tech Mahindra, ThoughtWorks, TIVIT, T-Systems, Vericode and Yaman as Leaders in one quadrant each.

In addition, Inmetrics, NAVA, Spassu, TCS and Vericode are named as Rising Stars - companies with a "promising portfolio" and "high future potential" by ISG's definition - in one quadrant each.

Customized versions of the report are available from Prime Control, Spassu, TQI and Vericode.

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among ADM Services providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Next-Gen ADM Services report for Brazil is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III ) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries-a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com.

Source: Information Services Group, Inc.

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