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.
Why read this Market Insights?
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 These challenges mainly stem from outdated monolithic architectures, stringent regulatory compliance demands, and a lack of end-to-end visibility across complex, distributed application environments.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.
Methodology
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.
Table of contents
About the report (Page 3)
Executive summary (Pages 4–7)
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- Defining application management services
- Key application management services trends shaping the market
- Avasant recognizes 25 top-tier providers supporting the adoption of application management services
Demand-side trends (Pages 8–12)
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- Legacy systems, decentralized strategy, and resistance to change pose significant hurdles for application management
- Telecom, media, and entertainment, and manufacturing sectors lead the adoption of application management services
- Modernizing legacy systems and integrating disparate systems are key priorities for over 50% of enterprises leveraging application management services
- Enterprises are leveraging agentic AI-driven solutions to modernize legacy systems, enhance DevOps efficiency, and optimize IT operations
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.