Low-code software development is growing rapidly amid tech talent shortages

The rapid pace of change and the need for code in virtually every industry, including banking, has led to significant growth in alternative methods of software development. Low-code and no-code are development approaches that are seeing strong traction amid a shortage of tech talent and surging demand from organizations pursuing digital transformation strategies.

low code refers to to a software development approach where developers create applications in a graphical interface. In practical terms, this means that instead of writing thousands of lines of code and syntax, developers simply drag and drop visual templates to build apps.

This implies that repetitive and tedious tasks, such as dependency management, code validation, and complicated builds, can be removed through automation, allowing developers to focus instead on the extra creative effort that will differentiate their applications from those of competitors.

Not only that, but low-code is often seen as the relevant solution to changing customer expectations. The rapid adoption of digital over the past few years has placed enormous pressure on development teams to deliver ever more sophisticated applications in ever shorter timeframes, while maintaining, managing and evolving a portfolio of existing applications. Forest believes that low-code development platforms can make software development up to ten times faster than traditional methods.

Low-code application development provides organizations with the capabilities to bridge this gap, enabling increased agility and productivity and, in some cases, a better customer experience. Platforms like OutSystems, for example, provide the capabilities to deliver multiple experiences, allowing organizations to address all the ways customers engage digitally (eg, touch, voice, and gestures).

Common features of a low-code application development platform include a visual integrated development environment (IDE), connectors to various back-ends or services such as data structures, storage and retrieval, and an application lifecycle manager.

The rise of low-code

Low-code has grown in popularity over the past few years, attracting interest from the business world for its ability to allow organizations to deliver sophisticated applications in a much shorter time.

Mid-2021, more than a quarter of senior developers surveyed by Forrester reported that their organization has developed apps using citizen developers and low-code platforms. By 2025, technology research and advisory firm Gartner estimates that 70% of new applications developed by companies will use low-code or no-code technologies.

The growth of these platforms has further been fueled by the continued shortage of tech talent, which organization consultancy Korn Ferry estimates had a deficit of 1.1 million in 2020. This number is expected to rise to 4.3 million workers by 2030.

Global talent gap in financial and business services by economy

Global Talent Gap in Financial and Business Services by Economy; KornFerry

In Singapore, software developers and engineers are currently the most sought-after talent in the financial sector with over 700 job opportunities currently available, according to Ravi Menon, Chief Executive of the Monetary Authority of Singapore (MAS).

These drivers, coupled with rising customer expectations and continued technological advancements, are expected to push the low-code and no-code development space to the top. By 2030, the American market research and consulting company Grand View Research waits the global low-code development platform market size to reach US$35.2 billion, registering a compound annual growth rate (CAGR) of 22.9% from 2022 to 2030.

In banking and finance, FintechOS is a leading low-code platform that enables banks, financial institutions and insurers to build, test and scale new digital products and services in weeks rather than some months.

The startup, headquartered in London, firm a US$60 million Series B after being quickly adopted by financial institutions across Europe. He says more than 40 financial institutions now use his technology, including Erste Bank, Societe Generale, Howden Group Holdings and Vienna Insurance Group.

Featured image credit: edited from freepik here and here

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