AI Is Reshaping Application Modernization and Operations

New Application Management Services 2026 RadarView™ profiles 33 recognized providers as enterprises pursue modernization, performance optimization, and controlled AI autonomy.

LOS ANGELES, CA – September, 2026

Avasant, a leading management consulting and research firm, has released its Application Management Services 2026 RadarView™, examining how AI is changing application modernization and operational support.

Avasant evaluated 47 providers and recognized 33 across five categories: Leaders, Innovators, Disruptors, Challengers, and Tech Pioneers.

Among the report’s key findings:

  • Over 50% of enterprises are balancing modernization with performance optimization. Organizations are adopting cloud-native approaches, AI-assisted engineering, and observability to improve application reliability and maintainability.
  • Technical debt and skills shortages continue to hinder modernization. Complex dependencies and limited documentation are prompting phased programs and structured knowledge capture.
  • Application operations are moving toward controlled AI autonomy. Agents support incident triage and approved remediation, while specialists oversee complex or high-risk issues.
  • Nearly 60% of provider investment targets assets and partnerships. Providers are building reusable AI platforms and strengthening ecosystems to support modernization and operations.

These findings suggest that enterprises should connect modernization priorities with operational safeguards.

“Enterprises need to modernize aging applications without disrupting the critical processes they support,” said Ruth Steinberg, Partner at Avasant.

Providers are extending Gen AI across the application life cycle and adopting hybrid pricing linked to automation and transformation outcomes.

The companion Application Management Services 2026 Market Insights™ examines enterprise adoption and demand-side trends.

Evaluating the evolving provider landscape

The Application Management Services 2026 RadarView™ assesses practice maturity and future-proofing. Its methodology draws on provider input, focused briefings, public disclosures, and ongoing market interactions.

Its 33 provider profiles cover proprietary assets, clients, partnerships, case studies, and analyst insights to support comparison of technology and delivery capabilities.


Read the research:

Application Management Services 2026 RadarView™

Application Management Services 2026 Market Insights™


Media Contact

Shael Roopchand
Senior Director, Corporate Strategy
Avasant
Email: shael.roopchand@avasant.com
www.avasant.com

About Avasant

Avasant is a management consulting and research firm specializing in digital transformation, technology strategy, sourcing advisory, and business transformation. Through its consulting services, market intelligence, and proprietary research, Avasant helps organizations navigate emerging technologies, evaluate service providers, and achieve measurable business outcomes.

For more information, visit www.avasant.com.

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