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Enterprise Mobile App Demand is Evolving in 2017

Many enterprises across the globe are not creating mobile applications. According to the findings from a recent Gartner survey, 39 percent of respondents said they had not built, customized or virtualized any mobile apps in the previous 12 months.

"Many IT teams will have significant backlogs of application work that need completing, which increases the risk of lines of business going around IT to get what they want sooner," said Adrian Leow, research director at Gartner. "Development teams need to rethink their priorities and span of control over mobile app development, or risk further erosion of IT budgets and the perceived value of IT development."

Enterprise Mobile App Market Development

According to the survey, those enterprises that have undertaken mobile app development have deployed an average of eight mobile apps, which has remained relatively flat when compared with 2016. On average, another 2.6 mobile apps are currently being developed and 6.2 are planned for the next 12 months, but not yet in development.

"It's encouraging to see significant growth in the number of mobile apps that are planned, but most of this growth is in mobile web apps as opposed to native or hybrid mobile apps," said Mr. Leow. "This indicates that some enterprises may be frustrated with developing mobile apps and are instead refocusing on responsive websites to address their mobile needs."

Gartner's survey reveals that 52 percent of respondents have begun investigating, exploring or piloting the use of bots, chatbots or virtual assistants in mobile app development, which is surprisingly high given how nascent these technologies are.

"While this response may be more indicative of greater awareness of these technologies than of anything else, it's still good to see that enterprises have begun to consider these technologies, because they will grow in importance relatively rapidly," said Mr. Leow.

According to the survey, the primary barriers to mobile initiatives are resources related -- lack of funds, worker hours and skills gaps. Cost concerns are pervasive in IT organizations so this is not surprising, but it points to the need to enhance productivity with the budgets that IT development organizations already have. Other barriers include a lack of business benefits and ROI justification.

In terms of spending, the survey revealed that organizations' actual IT spend on mobile apps is consistently lower than they forecast. Despite 68 percent of organizations expecting to increase spending for mobile apps, the average proportion of the overall software budget is only 11 percent.

Outlook for Mobile Applications Adoption

Those that plan on increasing spending in 2017 expect to do so by 25 percent over last year. For the past few years, Gartner's research has shown that while organizations have indicated that they will increase their mobile app development budget spend, the reality is that spending allocation has decreased.

"Application leaders must turn around this trend of stagnating budgeted spend on mobile app development, as employees increasingly have the autonomy to choose the devices, apps and even the processes with which to complete a task," said Mr. Leow. "This will place an increasing amount of pressure on IT to develop a larger variety of mobile apps in shorter time frames."

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