Learn What Will AI Do to Software Development and AIOps Outsourcing here.
According to ISG's latest research, integrating Generative AI (GenAI) into the software development process significantly enhances productivity, efficiency and quality. AI-driven analytics streamline stakeholder interviews and requirements gathering and automate tools to improve system architectures and user interfaces that ensure accuracy and efficiency. AI assistants support code generation, reviews and bug fixing and reduce manual effort and enhance code quality. AI also benefits testing by automating test-case generation and execution and increasing scope, speed and reliability.
AI tools also optimize deployment processes and proactively manage system maintenance that reduces errors and downtime. ISG Research shows that GenAI delivers substantial productivity gains – estimated at 30-42% – by automating insights, facilitating robust and error-resistant coding practices and enhancing software quality and security.
Integrating AI into the overall software development and maintenance process ensures higher-quality output. AI-driven code reviews and testing identify issues early, enforce coding standards and cover a wider range of scenarios. Continuous AI-driven optimization leads to ongoing improvements in quality and efficiency. Enhanced quality reduces post-deployment costs and increases user satisfaction, setting new standards in software excellence and reliability.
AIOps Is Revolutionizing Outsourcing
AI Operations (AIOps) is revolutionizing outsourcing strategies by enhancing cost-effectiveness, efficiency and service quality. Automating routine tasks reduces labor costs and allows for more competitive pricing. AI tools improve operational efficiency and enables providers to handle larger volumes and meet tight deadlines more effectively.
With AI handling mundane tasks, smaller, more skilled teams can focus on complex, high-value activities, improving service quality. Efficiency gains from AI facilitate a shift to value-based pricing, aligning costs with client benefits and fostering stronger client relationships. AI also enables advanced services like real-time data analysis, which can differentiate providers and command premium pricing. AI-driven demand forecasting enhances scalability and flexibility, optimizing resource allocation and reducing costs.
Implementing AIOps in infrastructure management results in significant productivity savings. Bringing together automated monitoring and alerts, predictive maintenance and resource optimization can streamline operations and reduce the need for constant manual oversight. AI-driven incident response systems quickly resolve issues to significantly enhance operational efficiency. According to ISG Research, these improvements lead to an estimated 40-50% increase in efficiency, translating to substantial cost savings and more reliable infrastructure performance.
As GenAI and AIOps continue to grow rapidly in 2024, the adoption across global service integrators and integration into new software development tools is driving unprecedented efficiency and innovation. Embracing these technologies, as highlighted in the State of AI report, transforms software development, maintenance and outsourcing and positions organizations as technological leaders that are setting new benchmarks in efficiency, quality and innovation.
About the author
Steve Hall
As the leader of ISG’s business in EMEA and an Executive Board Member, Steve provides strategic insight and advice to help ISG’s clients solve their most critical business challenges, helping them adopt and optimize the technology and operating models they need to compete successfully. In particular, he uses his long experience and broad expertise to challenge and inspire them to think about their risks and opportunities in new and unexpected ways.
Past achievements for clients
Steve leads his team’s engagement with clients with an industry-recognized and highly valued perspective on the most important trends in business and technology. He asks and answers the big questions: Why do you need to transform? What’s your best way forward? What do you need to accelerate? And where should you invest your technology dollars to make it all happen?
Among his many client success stories, his ability to take in the big picture, define the problem and connect the dots to the right solutions helped one legacy postal and shipping giant transform itself into a modern logistics powerhouse. He also guided a global energy industry leader through a complex operating model and IT provider transition, helping them see past the obvious cost cutting measures to identify the root causes of their challenges—and delivering savings far beyond what they had imagined.
