Reply: a New Study Shows that Agentic AI will Become a Strategic Alternative to Traditional Sourcing Models for 93% of Tech Leaders
MWN-AI** Summary
Reply has released a significant study, “From Code to Control: AI’s Takeover of Software Development Lifecycle,” conducted by Forrester Consulting. The research surveyed 536 IT executives across Europe and the U.S., revealing the evolution of AI from basic coding assistants to advanced autonomous agents capable of managing the software development lifecycle (SDLC). This shift is leading 93% of tech leaders to plan the adoption of Agentic AI as an alternative to traditional sourcing models within the next two to three years.
The findings underscore the challenges faced by traditional offshoring models, which are now seen as inefficient due to hidden costs and regulatory compliance difficulties. Notably, 78% of leaders indicated that offshoring complicates adherence to regulations like GDPR, while 76% experienced heightened risks pertaining to technical debt and software quality. Furthermore, despite 76% of firms having implemented some AI capabilities, only a mere 20% have achieved comprehensive integration throughout the SDLC, suggesting a vast opportunity for those who can effectively scale AI solutions.
Reply's innovative “Silicon Shoring” delivery model utilizes a multi-agent system to address these challenges. By blending human expertise with collaborative autonomous AI, this model not only ensures high standards of compliance and quality but also facilitates faster innovation without compromising security. Filippo Rizzante, CTO of Reply, emphasized that the market is witnessing AI transition from a productivity tool to a disruptive force that necessitates a new operational paradigm, thereby reinforcing a shift back to control in software development. The study recommends that organizations establish a clear roadmap to reconfigure their delivery models around AI, focusing on strategic architecture and compliance.
MWN-AI** Analysis
Reply (EXM, STAR: REY) is positioned at the forefront of a transformative shift in software development, as highlighted in Forrester Consulting's recent study, "From Code to Control: AI’s Takeover of Software Development Lifecycle." The analysis underscores that 93% of tech leaders intend to embrace Agentic AI as a strategic alternative to traditional outsourcing models in the next two to three years, responding to the limitations of conventional offshoring. This presents an excellent opportunity for investors to consider Reply's value proposition.
One of the organization's most significant innovations is its Silicon Shoring model, which combines human expertise with autonomous AI to enhance software development efficiency while mitigating compliance risks. As 78% of IT leaders cite compliance complexities with existing offshoring practices, Reply’s proactive approach to merge human intellect with AI capabilities stands to offer a competitive edge that aligns with evolving industry needs.
Moreover, the study indicates a maturity gap where only 20% of organizations have fully integrated AI into the software development lifecycle, signaling substantial upside potential for companies like Reply that can scale these technologies effectively. As 81% of leaders recognize AI systems as essential to future competitiveness, Reply's strategic initiatives could lead to increased market share and revenue growth.
Investors should also note the urgency emphasized in Forrester's recommendations. A coherent 90-to-120-day roadmap for integrating AI is essential for companies to remain viable. Organizations that fail to adapt may face heightened risks of technical debt and quality issues, reaffirming the necessity of Reply’s innovative delivery model.
In summary, Reply stands poised for growth as it addresses pressing industry challenges in software development, driven by the expanding role of Agentic AI. Given this trajectory, Reply's stock may present a compelling opportunity for those looking to capitalize on the intersection of AI innovation and software development agility.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Reply [EXM, STAR: REY] today announced the release of “From Code to Control: AI’s Takeover of Software Development Lifecycle” , a commissioned study conducted by Forrester Consulting. The research, which surveyed 536 IT Executives across Europe and the US, highlights the progressive transition from simple AI coding assistants to autonomous agents capable of orchestrating the entire software development lifecycle (SDLC).
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260310922600/en/
Silicon Shoring is Reply’s delivery model designed to leverage this shift toward Agentic AI. By using the Silicon Reply multi-agent system, this methodology offers a robust alternative to traditional offshoring.
The study underscores a critical turning point for software development: as traditional offshoring models struggle with hidden costs and regulatory hurdles, 93% of organisations plan to adopt Agentic AI within the next two to three years as a strategic alternative to outsourced software development and other traditional sourcing models.
The research found that 81% of leaders believe Agentic AI systems , which are capable of autonomous decision-making and workflow orchestration, will become a competitive necessity within the next three to five years. This shift is also driven by the declining efficacy of traditional outsourcing models: according to the study, 78% of leaders find that offshoring complicates compliance with regulations like GDPR, while 76% report increased risks of technical debt and code quality issues (bugs and rework).
The study also reveals a significant maturity gap: while 76% of firms have adopted AI in some steps of the software development lifecycle, only 20% have achieved pervasive integration across the lifecycle. This disparity suggests a substantial opportunity for organisations that can scale AI effectively beyond isolated use cases to a systemic level. Forrester recommends that leaders establish a 90-to-120-day roadmap to reorchestrate their delivery models: this involves treating AI-generated code with “Zero Trust” scrutiny and shifting talent strategies to prioritise architectural domain knowledge over rote coding skills.
"The findings of Forrester study confirm what we are seeing in the market: AI is no longer just a productivity tool, but a useful disruptor that demands a new operating model," said Filippo Rizzante, CTO at Reply. "The limitations of traditional offshoring, specifically in quality and compliance, are driving a return to control. With our Silicon Shoring model, we are answering this need by combining the proximity of Reply industry-specific and AI experts with the infinite scalability of Agentic AI, ensuring that our clients can innovate faster without compromising on security or architectural integrity."
Silicon Shoring is Reply’s delivery model designed to leverage this shift toward Agentic AI. By using the Silicon Reply multi-agent system , this methodology offers a robust alternative to traditional offshoring. It empowers organisations to maintain high standards of compliance and quality by integrating deep human expertise with a growing ecosystem of collaborative autonomous AI agents.
To download the full study visit: “From Code to Control: AI’s Takeover of Software Development Lifecycle”
Reply
Reply [EXM, STAR: REY, ISIN: IT0005282865] specialises in the design and implementation of solutions based on new communication channels and digital media. As a network of highly specialised companies, Reply supports major industrial groups in the telecom and media; industry and services; banking and insurance and public sectors in defining and developing business models enabled by the new paradigms of AI, cloud computing, digital media and the internet of things. Reply’s services include: consulting, system integration and digital services. www.reply.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20260310922600/en/
Media:
Reply
Fabio Zappelli
f.zappelli@reply.com
Tel. +390117711594
Irene Caia
i.caia@reply.com
Tel. +3902545761
FAQ**
How does the Silicon Shoring model employed by Reply REY differentiate from traditional offshoring practices in terms of compliance and quality control?
What specific capabilities do the autonomous agents in Reply REY's delivery model bring to the software development lifecycle that could enhance operational efficiency?
Given the study's findings, how does Reply REY plan to address the maturity gap in AI adoption among firms to achieve systemic integration beyond isolated use cases?
What strategic initiatives is Reply REY considering to meet the needs expressed by the 93% of organizations planning to adopt Agentic AI in the next few years?
**MWN-AI FAQ is based on asking OpenAI questions about Reply SpA (Italy) (OTC: RPYTF).
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