MORGES, Switzerland, 27 February 2018 – CA Technologies (NASDAQ:CA) today announced the results of a global study of 1,279 IT and business leaders, including 466 across six countries in Europe, which reveals that organisations putting agile and DevOps at the centre of their operations experience 57% higher rate of revenue growth and 43% higher rate of profit growth.
The study, ‘How Agile and DevOps Enable Digital Readiness and Transformation’, conducted by IT industry analyst firm Freeform Dynamics, also finds that while 76% of European respondents recognise that agile and DevOps approaches drive significant business success when implemented together, many are struggling with certain challenges and missing out on the extensive benefits these approaches bring.
The study showcases the characteristics of ‘Agility Masters’, the top 14% of European organisations that score highly on their breadth, depth and consistency of agile and DevOps use. Besides significant revenue and profit growth, these organisations are also seeing other advantages over their ‘Mainstream’ counterparts. These include:
- 2.6 x more likely to be growing revenue at a rate of over 20%
- 2.4 x more likely that company’s culture and practices support collaboration across development, operations and IT security
- 2.3 x more likely for the software team to be well aligned with the strategic goals of the business
- 2.2 x more likely for the company to understand customers’ needs
“The adoption of agile and DevOps across the entire organisation provides the flexibility to pivot at speed and respond to changing customer demands, user expectations, regulatory change and, most importantly, market opportunities,” says Andrew Sales, EMEA Presales Director, Agile Management, CA Technologies. “The take-up of agile and DevOps must also be business-driven, integrated across teams, iterative and use the right analytics and feedback loops enabling fail-fast and continuous improvement – everywhere.”
Most European Organisations Committed to the Full Adoption of Agile and DevOps Practices
European development teams are transforming the way they work. According to the study, 81% of European organisations are committed to the adoption of agile methods, for example, and 67% are committed to the full adoption of DevOps. Moreover, 87% either widely or partly employ agile within their development teams. And the value of agile is becoming more widely appreciated. For example, 74% say agile is having a positive impact on speeding innovation and time-to-market. Meanwhile, 76% believe it is having a positive impact in reducing IT costs.
The study shows that agile practices are used in different parts of the business. For instance, 84% of European organisations are widely or partly exploiting agile for development or product research, 79% for customer service/support and 78% for their sales organisation.
It’s Not All About Technology and Process: The People Perspective
The study also found that organisations are plagued by similar challenges when it comes to improving the effectiveness of their software development projects: culture, skills, programme investment and leadership alignment. The research highlights a widespread recognition that implementing agile and DevOps practices across the software lifecycle is not just a matter of new skills and working patterns. For some, it also requires a significant shift in mindset and behaviour and making those changes is very much a people issue – even at a senior executive level. Top priorities to improve effectiveness identified by European respondents include:
- Improve the culture of the organisation so it encourages and rewards collaboration (84%)
- More support and commitment from management at all levels (83%)
- Training for IT teams on how to collaborate and incorporate best practices into their day-to-day jobs (78%), and additional resources to help implement agile and DevOps practices (76%)
- Relieve time pressures so teams can implement effective agile and DevOps practices (72%)
Some 70% of European organisations also found it very difficult or challenging to find professionals that were familiar with agile methods, 80% struggled to find professionals with DevOps experience and 70% agreed it was difficult to find staff with collaborative cross-team working experience. This clearly indicates a skills gap for the majority of organisations, which requires resources, especially training, to be made available.
Indeed, the Chief Architect/CTO of a retail business interviewed for the study commented, “Raising the capability of the engineering team through a well-crafted careers development programme will allow us to continue to recruit and retain high caliber individuals”.
Connecting Execution to Business Outcomes
The connection between agile, DevOps and business outcomes centres around the continuous feedback loop connecting the customer experience to the requirements engineering – showing how well software delivery is performing and supporting the business itself. So, to further reap the benefits of agile and DevOps, organisations must also leverage the responsiveness and flexibility offered by cloud, containers and other new code design and delivery architectures, with a smooth shift-left of all activities – such as continuous testing – and finer granularity of iteration across the whole of the software delivery and ops cycle.
Download the full report and other supporting materials:
The global online survey of 1,279 senior IT and business executives was sponsored by CA Technologies and conducted by industry analyst firm Freeform Dynamics. It was augmented by in-depth telephone interviews with key industry executives. For full survey methodology details, please see the report, “How Agile and DevOps enable digital readiness and transformation.”
About Freeform Dynamics
Freeform Dynamics is an IT industry analyst firm. Through research and insights, the firm aims to help busy IT and business professionals get up to speed on the latest technology developments, and make better-informed investment decisions. For more information, and access to a library of free research, please visit www.freeformdynamics.com.