How Software Product Engineering Service Providers are Helping ISVs in their As-a-Service Journey

In an earlier Soundbite, we explored how ISVs are being disrupted and can transition to the “As-a-Service Economy” following the HfS eight ideaIs of the As-a-Service framework. In this follow-up Soundbite, we look at the investments that software product engineering service providers are making into capabilities to help ISV clients make that transformative journey.

Software product engineering service providers are investing in:

1. Design Thinking either through developing an in-house capability by training or by acquiring design studios. This will help ISVs rethink and improve the front-end of the customer or user experience but when applied properly to rethink the backend software experience as well to improve overall performance.
2. DevOps to encourage greater collaboration between the development and operations environment and in the automating of the development, testing and delivery processes. This will help ISVs in reducing the time-to-market of their software products.
3. Patents and IP Solutions by filing patents both on behalf of themselves and on behalf of their clients. Service providers are developing IP solutions for use by ISVs and thus helping ISVs to benefit from their innovation efforts.
4. Agile by implementing an agile development methodology across the operations of the service provider. This is helping ISVs to manage their release schedules better and reduce time-to-market as well.
5. Code Reuse and Automation by developing frameworks, tools, accelerators, repositories for automating software product development process across design, development, and testing. This will help ISVs to reduce the time-to-market for new products and manage constant updates faster for existing products.
6. SaaS by developing expertise and solutions to migrate existing products to SaaS environment and also in developing new SaaS products. This is to help ISVs to transform and remain relevant in “As-a-Service Economy” that is rapidly become the new norm.
7. Product Management and specifically capabilities to help ISVs develop product roadmaps, prioritize feature requests, better identify user needs and manage their own user groups. This will help ISVs manage their growing product portfolio effectively at a time when product life cycles are getting shorter and user expectations are higher.
8. Vertical Knowledge by hiring more domain experts and SMEs, implementing training programs and developing vertical IP solutions and accelerators. This is helping ISVs to leverage service provider’s expertise for core business logic also. 
9. Unique commercial models by using different pricing approaches such as transaction based, gainshare, risk reward, licensing, reverse licensing, etc. This is helping ISVs to better monetize their products and helping to protect themselves on downward risk as well.

We believe above should be the leading criteria for evaluation of software product engineering service providers capabilities for helping ISVs in “As-a-Service Economy” in addition to the familiar criteria of service delivery, client management, that have long been part of the service provider selection process in this market.

In our inaugural 2015 ISV Software Product Engineering Services Blueprint Report we have evaluated capabilities of the leading software product engineering service providers including Alten Calsoft Labs, Belatrix, Cognizant, EPAM, Happiest Minds, Harman, HCL, IGATE, Luxoft, Nexient, Pactera, TCS, and Tech Mahindra on above criteria as well. The Blueprint will be released this week. Keep watching this space.