This report identifies key demand-side trends in the application management services space, helping enterprises fine-tune their application management strategies. It provides an overview of top implementation challenges, industry-specific adoption, diverse use cases driving implementation, and the integration of agentic AI across key stages of application management based on Avasant’s assessment.
Organizations face significant challenges in their application management journeys, including legacy systems, decentralized strategies, resistance to change, skills shortage, workflow automation, and integration barriers. These challenges mainly stem from outdated monolithic architectures, stringent regulatory compliance demands, and a lack of end-to-end visibility across complex, distributed application environments. The growing need for scalable cloud-native solutions, real-time service delivery, and ongoing innovation to meet evolving customer expectations and operational needs is fueling the adoption of application management services in the telecom, media and entertainment, and manufacturing sectors. Additionally, companies are integrating agentic AI solutions to accelerate legacy modernization, enhance DevOps efficiency, and optimize IT operations.
The Application Management Services 2025 Market Insights™ aids enterprises in identifying important market trends and challenges for any application management services project that they take part in.
The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; and lessons learned from consulting engagements.
About the report (Page 3)
Executive summary (Pages 4–7)
Demand-side trends (Pages 8–12)
Key contacts (Page 13)
Read the Research Byte based on this report. Please refer to Avasant’s Application Management Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.
Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.
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