Enterprises across the Asia Pacific (APAC) region are rapidly integrating AI into their application development and maintenance (ADM) operations, transforming the way applications are built, tested, and maintained. According to the newly released 2025 ISG Provider Lens AI-Driven ADM Services report by Information Services Group (ISG), this trend is reshaping the region into a strategic hub for AI-enabled ADM services.
The research highlights that organizations are increasingly leveraging AI-based ADM solutions to modernize legacy systems, enhance operational efficiency, and ensure software reliability. Digital transformation initiatives, coupled with government support in several APAC markets, have accelerated this adoption.
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“Enterprises across the region are positioning themselves to take advantage of AI capabilities in their operations,” said Michael Gale, partner and regional leader, ISG Asia Pacific. “As they do, Asia Pacific is becoming a strategic hub for delivery of AI-enabled ADM services that are increasingly focused on innovation and advanced technology.”
The report reveals that companies are deploying AI-powered development environments to boost code quality, shorten release cycles, and improve user experience. They are increasingly adopting generative AI models to predict bugs, perform static code analysis, and automatically generate code snippets. These solutions reduce manual effort, minimize human error, and make development pipelines more reliable, allowing businesses to deliver solutions to users faster.
In software testing, enterprises are shifting from traditional manual quality assurance to AI-driven automation. AI systems now generate test scripts, detect defect-prone areas, and implement self-healing mechanisms during testing. This integration of AI and machine learning makes testing more agile, reduces time, and enhances product quality.
Application modernization is another key focus. Organizations are moving from legacy systems to cloud-native and microservices-based architectures using AI-powered tools for code refactoring, dependency mapping, and extraction of business logic. These technologies accelerate migration and improve overall business efficiency and competitiveness.
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“The growing availability of AI tools for application development coincides with a wave of digital transformations across Asia Pacific,” said Maharshi Pandya, senior lead analyst, ISG Provider Lens Research, and lead author of the report. “Service providers in the region have a critical role in introducing these innovations, backed by national leaders in Southeast Asia and other areas.”
The report also explores emerging ADM trends, including AI governance, AI-driven observability, and predictive maintenance. It evaluates 36 providers across Application Development Outsourcing, Application Managed Services, and Application Quality Assurance quadrants. Leaders identified across all three quadrants include Accenture, Capgemini, Cognizant, DXC Technology, HCLTech, IBM, Infosys, TCS, Tech Mahindra, and Wipro. Deloitte and Hitachi Digital Services are recognized as Rising Stars in multiple quadrants, while LTIMindtree stands out as the global ISG CX Star Performer for 2024.
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