ISG to Evaluate Providers of AI-Driven ADM Services
The study results will be published in a comprehensive series of ISG Provider Lens™ reports, called AI-Driven ADM Services, scheduled to be released in October 2025. The geographically focused reports will cover service providers that are rapidly developing new skills and capabilities in GenAI and intelligent agents to deliver measurable business outcomes for their clients.
Enterprise buyers will be able to use information from the reports to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm's buy-side clients.
Today's enterprises are seeking partners with specialized skills that enable them to deploy AI-driven solutions for streamlining application development activities such as requirements analysis, design and coding. AI-enhanced tools help enterprises prioritize application features by analyzing historical user data and insights, while AI-enabled testing and QA solutions enhance software reliability through intelligent test case generation and predictive quality assurance.
'As organizations continue to emphasize data security and compliance, they need ADM providers capable of implementing robust security frameworks and managing risks,' said Heiko Henkes, managing director, ISG Provider Lens Research. 'One new capability these partners should be adding to their portfolios is the ability to integrate AI and ML tools into application performance monitoring to check for anomalies and predict quality-of-service levels for new applications.'
ISG has distributed surveys to more than 125 ADM service providers serving the global ADM services market. Working in collaboration with ISG's global advisors, the research team will produce six quadrants representing the AI-driven ADM services the typical enterprise is buying based on ISG's experience working with its clients. The six quadrants are:
Application Development Outsourcing, evaluating providers offering AI-based application development outsourcing services across various technologies and industry verticals. Providers in this space often possess extensive consulting expertise as well as strong partnerships to implement methodologies such as CI/CD pipelines, AI integration and DevOps.
Application Development Projects, assessing providers offering application development services using AI. These providers offer tools, accelerators and solutions that ensure rapid time to market, identify areas for cost optimization and improve clients' operational efficiencies.
Application Managed Services – GSIs, studying global system integrators (excluding niche specialists) that manage defined application portfolios, specifically for applications in production. Services in this space include technical functions such as application support, enhancement, platform upgrades, security management, bug fixes and troubleshooting.
Application Managed Services – SIs, evaluating providers offering services to clients with expertise in specific technologies or industries. Unlike GSIs, these specialist providers offer deep expertise in certain industry segments, focusing on delivering high-impact services leveraging their in-depth knowledge.
Application Quality Assurance, assessing providers offering QA services encompassing assessments, design, implementation and managed services. These services include conventional and GenAI-driven testing strategies, along with AI-driven predictive analytics to identify bugs or defects and determine the level of business process optimization achieved.
Continuous Testing Specialists, studying providers whose services ensure that new features and code changes do not introduce regressions or disrupt existing functionality. These providers offer robust testing strategies, scope, methods and scripts for determining the most effective approach for testing, including employing AI-driven automation for execution.
Geographically focused reports from the study will cover the global AI-driven ADM services market and examine products and services available in the U.S., Brazil, Europe and the Asia Pacific region. ISG analysts Akhila Harinarayan (U.S.), Pedro L. Bicudo Maschio (Brazil), Oliver Nickels (Europe and Germany) and Maharshi Pandya (Asia Pacific) will serve as lead authors of the reports.
A list of identified providers and vendors and further details on the study are available in this digital brochure. Companies not listed as AI-driven ADM service providers can contact ISG and ask to be included in the study.
All 2025 ISG Provider Lens™ evaluations feature expanded customer experience (CX) data that measures actual enterprise experience with specific provider services and solutions, based on ISG's continuous CX research. Enterprise customers wishing to share their experience about a specific provider or vendor are invited to complete this online survey. Participants will receive a copy of this report in return for their feedback.
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.
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
Will Thoretz, ISG
+1 203 517 3119
[email protected]
Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
[email protected]
SOURCE: Information Services Group, Inc.
Copyright Business Wire 2025.
PUB: 04/08/2025 11:19 AM/DISC: 04/08/2025 11:19 AM
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
17 minutes ago
- Yahoo
Nvidia is the most underowned megacap stock, Morgan Stanley says
Nvidia (NVDA) may be the market's biggest AI stock, but institutional investors are still shying away. "NVDA is now the most under-owned large-cap tech stock," Morgan Stanley analyst Erik Woodring wrote in a note. Though the chipmaker has grown into the world's most valuable company, investors don't hold it in line with its S&P 500 (^GSPC) weight. According to Woodring, Nvidia's market value accounts for 7.37% of the index, but its share in the average active institutional portfolio is 4.2%, an adjusted underweight of 2.41 percentage points. The gap is the largest of any of the 15 major tech companies Morgan Stanley's team tracks. The disconnect highlights Nvidia's unique position. Its stock has been one of the best-performing names — up nearly 1,300% in the past five years — thanks to the AI boom. But its rapid rise and ongoing risks tied to geopolitics and supply chains have made some investors hesitant to load up. History shows that underowned stocks often get pulled higher over time as investors gradually increase their holdings to match the stock's weight in the index. "There is a statistically significant relationship between low active ownership ... and future stock performance," Morgan Stanley wrote. By comparison, Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) are also underowned, but not to Nvidia's extent. Microsoft was underweight by 2.39%, Apple by 1.66%, and Amazon by 1.40%. In contrast, the most overowned tech stocks include Intuit (INTU) at +0.83%, Oracle (ORCL) at +0.32%, and Dell (DELL) at +0.25%. Despite the underweighting, Nvidia's fundamentals remain solid. "Leading indicators of compute demand remain exceptionally strong with no signs of slowing," the firm's analysts wrote. "As supply chain constraints around rack-scale solutions ease and the U.S. government advances export license approvals for China, we continue to view Nvidia as a premier asset in the current era of AI dominance." Nvidia's stock has been up 33% in 2025, outperforming the S&P 500's 10% advance. Much of the optimism stems from demand for its graphics processing units (GPUs), used for AI and cloud-based enterprise applications. Still, not everyone is on board with the bullish sentiment surrounding megacap stocks. Torsten Sløk, Apollo Management's chief economist, previously told Yahoo Finance's Opening Bid that the current valuations in megacap tech stocks, and the index as a whole, may not be sustainable. (Disclosure: Yahoo Finance is owned by Apollo Global Management.) At the time, he pointed to internal data showing that the price-to-earnings (P/E) ratios of the 10 largest S&P 500 companies, including AI stocks like Meta (META) and Nvidia, had surpassed levels seen during the dot-com bubble in 1999. Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Gizmodo
18 minutes ago
- Gizmodo
The Moment the AI Hype Cycle Really Kicked In
Does it feel like news about artificial intelligence is inescapable? You're not just imagining it. Zach Perkel, the Principal and Director of Applied AI at enterprise AI firm Fractal, tracked the number of AI-related posts that managed to crack the top 10 stories on Y Combinator's Hacker News, and found that we are experiencing peak AI (so far). Perkel analyzed 24,910 articles and posts that managed to crack the Hacker News top 10 from January 1st, 2019, to August 15th, 2025, to determine just how much momentum the hype train has gained. He found that interest in AI has seemingly 10x-ed from the first quarter of 2019, when just 39 AI-related posts managed to crack the list. By contrast, the third quarter of 2025, which is just barely halfway through its calendar period, has already seen 337 bits of AI content at the top of Hacker News. It's no surprise that we're talking about AI significantly more now than we were in a pre-ChatGPT, pre-AI everywhere world. But what is a bit shocking is just how much the conversation has accelerated recently. Per Perkel's data, a huge spike in AI interest happened between the fourth quarter of 2022—which encompasses the public release of ChatGPT on November 30, 2022—and the first quarter of 2023, when conversation about the implications of the tool really started to heat up. That period saw a leap from 89 AI-related stories in the top 10 for Q4 2022 to 174 stories in Q1 2023. But that leap—the one that captures the moment we went from the public-facing chatbot not existing to being the dominant way in which people interact with AI—is the only one that is larger than the leap experienced between Q2 2025 and Q3 2025. Given that we're not even through this quarter, it's safe to assume that this will become the biggest spike in interest in AI yet. That's interesting, because Hacker News is not exactly for the uninitiated. It's not like that audience is just waking up to the accessibility or ramifications of widespread AI tools. It also makes Perkel's sentiment analysis of the posts a noteworthy indicator. He found that in the A.C. (After ChatGPT) era, no period has seen a larger percentage of negative posts about AI than the current quarter, which has seen 42% of posts critical of the topic. It also happens to be a new peak of a short-term trend, which has seen the sentiment on AI shift. In the first quarter of 2025, just 27% of top Hacker News posts on AI were negative. That jumped to 36% in the second quarter, which marked the highest percentage at the time since ChatGPT's introduction in late 2022—only to get topped again by the Q3 figures. There is almost certainly an AI bubble, though it's unclear if it's about to burst (OpenAI is on the verge of a $500 billion valuation). But there definitely appears to be an AI vibe shift.
CNBC
19 minutes ago
- CNBC
This 'picks-and-shovels' AI play is breaking out of resistance after seven years, the charts show
After seven years of trying to break through resistance, Bloom Energy (BE) has finally done it. Bloom Energy is known as a "picks-and-shovels" infrastructure play for the booming artificial intelligence build-out. Prior to the AI-boom, BE was focused on being a clean distributed power provider for businesses that needed reliability and lower emissions. Now, BE provides on-site power generation boxes (sometimes called Bloom Boxes) that supply always-on electricity with lower carbon emissions than the grid, that can also run on hydrogen with zero emissions, to hospitals, factories, utilities, and — you guessed it — also to data centers. In fact, Bloom just signed a deal with Oracle to supply power to their data centers. AI data centers are power hogs. Training and running large AI models requires a ton of electricity. Bloom's solid oxide fuel cells can sit next to the data centers and generate clean, reliable power around the clock and independent of the grid. Again, Bloom is not a chips / GPU play like Nvidia, but it helps solve the energy bottleneck that AI power demand is creating. Looking at the weekly chart, you can see the seven-year resistance (price ceiling level) that's been tested three times. Just last month, price finally closed above the $38 level creating a breakout. Thus far in August, we're holding above the newly formed support level and, as a result, we've begun building positions in our Active Opps model at Inside Edge Capital . Notice the cumulative shares traded in July of 240 million, the second-largest on record. The massive volume done in July and November 24 is certainly investors discounting the massive expected swing into profitability in 2026 to 53 cents GAAP earnings per share following a loss of 5 cents per share in 2025 as shown at the bottom of the weekly chart. Not shown is non-GAAP earnings that swung into profitability in 2024 with 28 cents per share earned compared to 10 cents per share lost in 2023 and a loss of 41 cents per share in 2022. Turning to the daily chart, we get a closer look at the seven-year $36-$38 resistance zone that was heavily traded in late July and early this month before finally pushing higher. That big volume spike on July 24 was the date the Oracle deal was announced . The prior three quarters showed a solid swing into profitability and consistent top line growth (red rectangle). The next three quarters look to be quiet in terms of growth, but again I believe investors are building positions ahead of the 2026 swing into more defined profitability. Turning back to entry tactics, the stock is down about 7% as a type of news that Vanguard trimmed its holding by about 0.3% but still owns approximately 19 million shares. The company is also showing about 9% short interest with an expected three days required to cover that short based on average daily trading activity. In our Active Opps portfolio, we just established a 3% allocation and will look to increase the stake to 5% or more if the key $38-$36 newly formed support zone holds. -Todd Gordon, Founder of Inside Edge Capital, LLC We offer active portfolio management and regular subscriber updates like the idea presented above. DISCLOSURES: Gordon owns BE personally and in his wealth management company Inside Edge Capital. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
