Talent Readiness for Next-generation Application Services PEAK Matrix® Assessment 2025

As enterprises navigate application modernization to drive agility, resilience, and business alignment, they face a key hurdle: a scarcity of talent with niche skills. Capabilities in areas such as cloud-native development, low-code platforms, microservices, DevOps, and legacy application modernization are high in demand but short in supply. Rising attrition, wage inflation, and the rapid obsolescence of technical skills further intensify this talent gap, creating significant execution risks for large-scale transformation programs.

In response, organizations are increasingly seeking IT providers with mature and forward-looking talent development strategies tailored to application services’ evolving needs. Providers are making proactive investments to build future-ready talent pipelines by combining traditional learning approaches, digital platforms, and hands-on training. In line with future-of-work principles, many are embedding AI readiness into their workforce strategies, ensuring teams are equipped to work alongside intelligent tools and automation. At the same time, they are focusing on integrating Gen Z talent by reshaping workplace culture, communication, and learning experiences to align with their digital-native expectations. To sustain long-term capability, providers are also enhancing employee engagement and retention through personalized career paths, continuous learning opportunities, and inclusive, purpose-driven work environments.

In this report, we assess 29 IT service providers featured on the Talent Readiness for Next-generation Application Services PEAK Matrix^®. The research will help buyers select the right-fit application service provider for their needs, while application service providers will be able to benchmark themselves against each other.