Brazil Firms Modernize Applications with Governed Agentic AI

AI cost controls and output logging help companies accelerate application delivery with accountability, ISG Provider Lens^® report says

SÃO PAULO--(BUSINESS WIRE)--Companies in Brazil are embedding agentic capabilities across software build and run functions while redirecting automation savings toward modernization, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® AI-Driven ADM Services report for Brazil finds that organizations are rapidly adopting agentic AI in application development and management, with local data protection, governance and procurement rules setting the pace. Approval gates, audit trails and token-level FinOps govern most Brazilian firms’ use of AI. Inflation pressures have eased since 2024-2025, and firms are using savings from automation to fund modernization rather than headcount expansion.

“Brazilian companies want AI embedded in delivery processes, but only with clear human accountability and cost controls,” said Shafqat Azim, partner, ISG. “The market is seeking automation paired with stronger evidence of quality, security and operational discipline.”

Enterprises are standardizing on secure CI/CD, internal developer platforms and unified observability to support agent orchestration. These foundations keep people involved in decisions, ensure actions are explainable and enable safe rollbacks. Highly regulated organizations, especially in financial services and public sector, often use private or sovereign model environments for sensitive workloads. They also require immutable logs connecting commits, tests and releases with auditable delivery workflows.

Quality assurance is evolving into continuous verification for AI-generated code and features influenced by large language models. Enterprises in Brazil require non-deterministic validation methods and privacy controls for test data. Development teams are using production telemetry to select tests and assess releases based on stronger evidence.

The growing use of AI for automation is changing the economics of software development and maintenance services in Brazil. Organizations are seeking lower unit costs and higher delivery volume within fixed budgets but often maintain traditional engagement models. Public entities and many large private enterprises continue to use hours- or squad-based contracts to comply with auditability expectations and established approval processes. Innovators are testing function-point, story-point and cycle-time service levels to measure deliverables more consistently, ISG says.

“The most effective service partners will introduce agentic automation along with reliable delivery measures,” Pedro L. Bicudo Maschio, lead author of the report. “They can help clients improve throughput while maintaining transparent costs, verified outcomes and approval controls. This approach gives enterprises a practical route to more predictable application services.”

The report also explores other trends affecting Brazilian enterprises, including the growing use of GenAI-assisted function-point estimates and setting token-FinOps consumption caps.

The report also explores other ADM trends in Brazil, including enterprise demands that providers integrate with their CI/CD and FinOps stacks and support Portuguese-language prompts and artifacts.

For more insights into the application and development challenges facing Brazilian enterprises, along with ISG’s advice for overcoming them, see the ISG Provider Lens^® Focal Points briefing here.

The report evaluates 63 providers across six quadrants: Application Development Outsourcing, Application Development Projects, Application Managed Services — GSIs, Application Managed Services — SIs, Application Quality Assurance and Continuous Testing Specialists.

The report names AI/R, Capgemini and GFT as Leaders in three quadrants each. It names Accenture, BRQ, CAST, Insi, Spassu, Stefanini, Tech Mahindra, TIVIT and Wipro as Leaders in two quadrants each. It names Base2, CI&T, Deal, DXC Technology, FCamara, Inmetrics, Nava, NTT DATA, Objective, Prime Control, Sempre IT, Softtek, T-Systems, TCS, TQI, Vericode and Yaman as Leaders in one quadrant each.

In addition, GFT, Taking and Unisys are recognized as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Altimetrik is named the global ISG CX Star Performer for 2026 among AI-driven ADM service providers. Altimetrik earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from Insi, Prime Control, Spassu, Stefanini and TQI.

The 2026 ISG Provider Lens AI-Driven ADM Services report for Brazil is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.