The 2025 ISG Provider Lens(R) AI-Driven ADM Services report for Asia Pacific finds that a growing number of enterprises are adopting AI-based ADM services to reach goals such as modernizing legacy systems, improving operational efficiency and ensuring software reliability. This trend is accelerated by the growth of digital transformation initiatives and government support in many markets in the region.
“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.”
Enterprises throughout the region are deploying AI-powered development environments to enhance quality, shorten release cycles and improve user experience, the report says. The technologies they are adopting include generative models that assist in bug prediction, detailed static code analysis and automatic generation of code snippets. By reducing manual effort, these tools can reduce human error while making the coding process more efficient. The more reliable development pipelines that result can also help companies deliver solutions to users faster.
Many enterprises across Asia Pacific are also rapidly incorporating AI tools into their software testing processes, driving a significant transition from manual quality assurance to automated testing, ISG says. AI-based systems can automatically generate test scripts, identify defect-prone areas and apply self-healing mechanisms during testing, leading to reduced testing time and improved product quality. By integrating AI and ML into test frameworks, companies are making their testing methods more agile.
AI also has a growing role in application modernization, a major trend in Asia Pacific as enterprises move from legacy systems to new architectures, the report says. Companies are recognizing how new software frameworks can improve business efficiency and competitiveness. Many are using AI-based solutions for code refactoring, dependency mapping and extraction of business logic from old source code, finding that these tools allow faster migration to modular, cloud-native and microservices-based environments.
“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 other ADM-related trends in Asia Pacific, including regional advancements in AI governance and the rise of AI-driven observability and predictive maintenance.
For more insights into the ADM-related challenges facing enterprises in Asia-Pacific, plus ISG’s advice for overcoming them, see the ISG Provider Lens(R) Focal Points briefing here.
The 2025 ISG Provider Lens(R) Application Development and Maintenance (ADM) Services report for Asia-Pacific evaluates the capabilities of 36 providers across three quadrants: Application Development Outsourcing, Application Managed Services and Application Quality Assurance.
The report names Accenture, Capgemini, Cognizant, DXC Technology, HCLTech, IBM, Infosys, TCS, Tech Mahindra, and Wipro as Leaders in three quadrants each. It names LTIMindtree and Planit as Leaders in one quadrant each.
In addition, Deloitte is recognized as a Rising Star – a company with a “promising portfolio” and “high future potential” by ISG’s definition – in three quadrants. Hitachi Digital Services is recognized as a Rising Star in two quadrants.
Customized versions of the report are available from Capgemini and Planit.
In the area of customer experience, LTIMindtree is named the global ISG CX Star Performer for 2024 among AI-driven ADM service providers. LTIMindtree 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 2025 ISG Provider Lens(R) AI-Driven ADM Services report for Asia Pacific is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens? Research
The ISG Provider Lens(R) 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 (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.
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