CIOs Struggling To Meet High Mobile App Demands

by CXOtoday News Desk    Jul 10, 2015


In recent times, more and more businesses are using Mobile apps, thereby fuelling the demands for apps. However, budget limitations, skill gaps and legacy infrastructure are posing huge challenges to CIO and the IT department to manage these apps.

These are the findings from a new study by 451 Research sponsored by Kony. According to the research, more than half of the companies are planning to come up with 20 or more apps in the next two years. 

“There is strong demand for new mobile apps, and companies are broadening their focus beyond core processes and application silos; however, enterprises are still very much in the early stages when it comes to mobile app strategies,” said Chris Marsh, principal analyst, 451 Research. 

Enterprises across industries especially in healthcare, financial services, insurance and retail, are driving CRM apps for sales, marketing and services, customer engagement and general employee productivity apps, notes the study.

Going forward, more companies will look to IT for the bulk of their internal mobile app development. However, the mix of development diversifies beyond just IT, with 42 percent of mobile app development work being done outside of IT, it says.

“The global market for enterprise mobility is expected to grow from $72 billion to $284 billion by 2019, nearly quadrupling in size,” said Dave Shirk, president of Products and Marketing, Kony.

“Companies need to be prepared to meet this demand for mobile business solutions with proper alignment between lines of business, IT developers and IT management, to effectively manage and lead enterprise mobility projects.”

Another recent study by Gartner also notes that demand for mobile apps outstrip available development capacity, making quick creation of apps even more challenging. A Gartner report notes by the end of 2017, market demand for mobile app development services will grow at least five times faster than CIO’s capacity to deliver them.

The research firm also forecasts mobile phone sales will reach 2.1 billion units by 2019, which will fuel demand for apps in the enterprise that meet the high performance and usability of consumer apps. Gartner principal research analyst Adrian Leow said enterprises find it a challenge to rapidly develop, deploy and maintain mobile apps to meet increasing demand, as it is exceedingly difficult and costly to hire developers with good mobile skills.

“Organizations increasingly find it difficult to be proactive against competitive pressures, which is resulting in their mobile apps becoming tactical, rather than strategic,” he said.

As employees now have the autonomy to choose the devices, apps and even the processes to complete a task, this is placing an increasing amount of pressure on IT to develop a larger variety of mobile apps in shorter time frames.

Leow believes while mobility in still nascent in most organizations, its time they start questioning how to start app development in terms of tools, vendors, architectures or platforms to remain relevant.