New survey research from leading global technology research and advisory firm Information Services Group (ISG) (Nasdaq: III) finds planned enterprise spending on application development will rise by nearly five percent in the coming year, driven by interest in realizing the business benefits of AI technologies.
The ISG Application Development and Maintenance (ADM) Study, conducted globally last month, asked 200 executives with decision-making responsibility for application development, maintenance, management and operations about their priorities, budgets, performance and challenges, their use of managed services and their next-generation approach.
Despite ongoing cost optimization efforts, the ISG study found ADM spending continues to increase, driven in part by interest in AI. Planned development spending is accelerating faster than maintenance spending, rising at 4.6 percent, compared to 1.6 percent for maintenance.
“Enterprise priorities for ADM center on developing and deploying AI, improving use of data and supporting customer experience,” said Alex Bakker, ISG Distinguished Analyst and co-author of the ISG study. “However, AI interest is not universal within organizations. Our survey found business line decision-makers prioritize customer experience and use of data, while enterprise executives are more focused on developing AI capabilities. This suggests that different audiences may be prioritizing different time horizons in their ADM contracts.”