The technology sector is now at the forefront of innovation, propelling humanity into a future of comfort and prosperity. In fact, software has forever changed the growth trajectory of mankind. But did you know that the software itself also changes and evolves?
That’s right, the breakneck speed at which digital transformation is reshaping our world is also pushing the boundaries of a new approach to software development, called Low-Code/No-Code.
What is Low-Code/No-Code?
Traditional software development required programmers to write hundreds, if not thousands, of lines of code to create functionality for applications and software. This required developers to have in-depth knowledge of computer languages such as C, C++, Java, and Python. But beyond knowing programming languages, developers had to go through the process of deploying, testing, and even managing servers.
But in the post-pandemic era, Low-Code/No-Code (LCNC) development platforms have grown in popularity due to their ease of use, allowing developers (professionals and hobbyists) to drag and drop components to create mobile or web applications. apps. This visual software development aid now gives wings to many companies to quickly build applications with little or no knowledge of development work.
Booming LCNC market
According to Gartner, the global LCNC market was worth $13.8 billion in 2021 and is expected to grow at a CAGR of 28.1% to reach $37.2 billion by 2025. Meanwhile, the market Indian fledgling LCNC surpassed $400 million in FY21, growing at a CAGR of 15% since FY2019 (according to research by NASSCOM and Nagarro).
For India’s LCNC market, 70% of revenue came from global markets and the country’s ecosystem has around 150 players (the majority being seeded startups). Industries gravitating towards LCNC in the country are BFSI, Retail and SaaS, which seem to enjoy the speed at which LCNC is accelerating its digital transformation journey.
“LCNC applications are growing in the BFSI space due to the need for increased efficiency, faster implementations in IT projects, and challenges in hiring and retaining qualified IT staff,” Rajashekara said. V Maiya, Vice President and Global Head of Business Advisory Group. , Infosys Finacle.
For nearly 50 years, coding has ruled the rooster of software development. Then, in 2014, Forrester coined the term “Low Code,” and there has been no looking back since.
In the era of digital transformation, the traditional development model cannot deliver development projects at the speed required by businesses and enterprises. Consequently, software development has shifted from waterfall methodology to an agile, low-code development model.
“LCNC can be a key advantage with increased competition between industries and changing trends in customer requirements. These platforms help companies achieve their goals quickly without compromising other efforts needed to create valuable products and solutions. With the speed and ease with which it is possible to build applications and systems with LCNC, it is no surprise that the market is growing rapidly,” explained Pranatarthi Haran, General Manager, APAC, Fluent Commerce.
LCNC takes a third of the prototyping time for customers compared to traditional software development methods while delivering faster time to market (50-75% faster launch with pre-coded solutions and customizations in shift). This enables organizations to leverage citizen development to accelerate development time and results in an 80-90% CapEx/OpEx reduction. Numbers like this drive a massive shift in the development space, as it’s estimated that 80% of technology products and services will be built by people who aren’t tech professionals by 2024.
Incidentally, India’s BFSI segment, which includes HDFC, SBI, Kotak, and ICICI, is responsible for 60-70% of LCNC player revenue. For the BFSI segment in FY21, LCNC saw the greatest impact on development time and cost in process-centric use cases in customer applications for credit card, banking and customer integration.
“Banks and financial institutions of all sizes and types can benefit tremendously from LCNC tools because they allow bank staff and branch managers to have zero or minimal coding experience to create workflows and systems that can collectively help increase business productivity, clear IT project backlog faster, fuel innovation, and accelerate the launch of new products and services, which are essential today to meet the pace change in end-customer expectations,” explained Maiya.
PCHFL takes advantage of Low Code
Piramal Capital & Housing Finance Limited (PCHFL), a subsidiary of Piramal Enterprises Limited, with over one million customers and a presence in 24 states, has over 300 branches across India. The company offers several products, including home loans and small business loans, to budget-conscious Indian customers in metro outskirts and Tier I, II and III cities.
The company wanted to implement a centralized loan origination and management system that would function as a source of data on risk, asset monitoring, compliance, investments and operations. PCHFL wanted to remove the menial and paper processes. Additionally, the organization was looking to integrate with fintech players to give the business an edge, making data-driven decisions for a robust underwriting process.
PCHFL leveraged a host of Microsoft services, including SharePoint Online and SharePoint Framework (SPFx), Azure, Power Platform, OneDrive and Microsoft 365 services to create a loan origination system (LOS) for end-to-end loan management. loans for its wholesale lending business.
The low-code solution yielded great results for PCHFL as the freshly created LOS helped it manage pre-sanction operations for a book size of Rs 500 billion at its peak. It also streamlined operational activities, eliminated redundant activities, and improved turnaround time for global sanction and some transaction specific activities such as CIBIL data mining, PPT exposure, PAN verification, etc. at least 30% throughout the life of the loan.
This allowed PCHFL to make credit decisions faster while ensuring compliance requirements were met. Additionally, PCHFL could now extract relevant data points and pass them to the data warehouse. Using this information, the business can perform predictive analysis with Azure AI and ML capabilities.
“We are optimistic about the opportunities that weak code, no code can unlock, and we strive to empower every person and every organization to achieve more by adapting quickly and delivering to their customers, partners and employees first-class, streamlined digital experiences on a secure site. , governable and scalable,” said Praveen Mellacheruvu, Business Lead – Business Applications, Microsoft India.
Beyond the BFSI
Today, the Indian LCNC market generates 10-15% of revenue for SaaS product and service companies looking to expand into global markets. The new software development platform is also used by several government organizations including Bangalore Metro Rail Corporation Limited (BMRCL), Indian Oil Corporation, Ministry of Finance, Bharat Petroleum and Brihanmumbai Electricity Supply and Transport (BEST).
If optimistic projections are to be believed, India could become a $4 billion LCNC market by 2025. But NASSCOM predicts that India could be a market of at least $1.1 billion in growth at the current rate.
As LCNC gains traction around the world, there will always be a place for quality software development beyond LCNC. Future companies will need to engage in both traditional and LCNC development to create effective and unique business solutions.
“Low-code and no-code approaches are built with traditional software development programs. Their interface may be easy to understand, but they run on traditional code, which won’t become obsolete anytime soon,” Haran said.
The future may have a more hybrid approach to development, indicating that developers should establish the codes and systems in place for enterprises to use AI-based LCNC platforms to enable faster deployment of platforms. and apps.
(Inputs: LOW CODE NO CODE – THE INDIA STORY Revolutionizing Software Development, March 2022 – Joint study by NASSCOM-Nagarro)