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Low code – a visual approach to software development – is breaking the traditional silos of business and IT to promote continuous collaboration. The low-code market generated a revenue of $10.3 bn in 2019 and is projected to grow from USD 13.2 bn in 2020 to USD 45.5 bn by 2025.
Why the sudden pivot towards low code?
With low-code platforms, business users can create their own apps without having to rely on experienced developers.
Low-code application development (LCAD) platform empowers developers to design, build, test, deploy, and manage enterprise applications without writing complicated code. It includes a visual modeling environment with a graphical user interface that enables business users without a technical background to easily create apps as per their specific business requirements.
The market growth is attributed to the increasing needs of digitalization and maturity of agile DevOps practices.
The key benefits of low-code platforms are:
- Development for all
- Improved agility
- Quicker development & testing cycles
- Easier multichannel deployments
- Effective risk management & governance
Active Areas of LCAD Utilization
From an industry-wide perspective, low-code platforms have found extensive uses in:
- Industrial digitalization: PwC partnered with Cognite and OutSystems to accelerate Industrial Digitalization. The partnership leverages DataOps and Low-Code Platforms for the swift transformation of digital capabilities across Manufacturing, Energy, and Utilities
- Citizen development: Quick Base introduced Quick Base Sandbox to work with IT to safely innovate and test low-code applications that support unique business processes. Sandbox enabling Safe Citizen Development across the enterprise
- Modernization: Deloitte partnered with Appian to modernize mission systems through low-code development and intelligent automation, which ranges across several technologies including artificial intelligence (AI), robotic process automation (RPA), robotic workforce management (RWM) for government and commercial clients
- Customer relationship management: Salesforce Introduced the first low-code blockchain platform for CRM. By bringing blockchain to the world‘s #1 CRM platform, companies can create blockchain networks, workflows and apps that deliver entirely new customer experiences.
LCAD Use Cases Across BFSI Industry
Low-code multi-experience development platforms are fuelling digital transformation journeys by accelerating the deployment of enterprise-grade solutions.
While LCAD has found widespread uses across industries ranging from BFSI to healthcare, IT, and others, in this report, our focus will be the BFSI industry.
The BFSI industry is expected to hold the highest share in the low-code platform development market. According to industry sources, the technology has reduced IT costs — which turns over more than €12 Billion — for the bank by 50%.
- For example, Mphasis leveraged the Mendix low-code platform to build 12 enterprise applications for internal use, and 3 industry applications that enable clients to process $1.7 trillion per year in secondary mortgage loans at a rate upwards of 10,000 loans per month.
- ING has collaborated with Genesis to launch the Credit Insurance Application (CIA), a deal-flow and portfolio application that will transform the management of credit and political risk insurance (CPRI) globally. CIA is built upon Genesis‘ Low-Code application platform.
- Low-code has also played a key role in GarantiBank‘s move to shift core end-to-end processes to the cloud to improve agility.
GarantiBank has unleashed agile way of working that delivers more value to their customers by adopting a low-code (rapid application development) approach for core banking applications. The move has helped them adopt a leaner, more agile way of working that helps digital transformation and operational excellence initiatives on the fly.
High-Value Opportunities In Low-Code
The rising use of low-code platforms among BFSI companies has not gone unnoticed. Several key vendors typically catering to the BFSI client base have also tweaked their offerings to incorporate rapid application development using platforms such as Appian, PEGA Platform, Oracle Application Express, Mendix, QuickBase, and others.
As seen below, Rapid Application Development and Prototyping are the target areas for service providers to win high-value in the near future.
Accenture is using the Mendix platform to:
- Create RESTful applications,
- Develop and Enhance Client Modules
- Design and Implement Web-based Application Architecture
…and other workloads for their clients like CHUBB, SES and others.
Whereas vendors such as Cognizant, Capgemini, & TCS are utilizing the PEGA platform to:
- Develop Claim Processing Platform
- Deploy data transforms, flows and UI components
- Application Development and Testing
…and other workloads for Anthem, AIG and others.
The Numbers Speak For Themselves
Organizations have started to adopt low-code solutions to develop business applications, reduce the overall cost, and minimize IT professionals’ workload. Vendors, especially, are keen to tap into low-code solutions to deliver quick turnaround times for their clients.
Mendix commissioned a “total economic impact“ study examining how one of their clients‘ customers are using its low-code platform. The study found that Mendix customers achieved more than $8 million in “application delivery savings“ as developers were able to get apps out the door faster.
The same study also created a composite “organization“ that saw a return on its estimated $696,900 investment in less than six months.
OutSystems, widely recognized as a low-code leader, has partnered with digital service provider Cognizant to deliver a wide suite of services.
With newer opportunity areas in healthcare, digital media & manufacturing emerging each day, enterprises will require robust service providers to supplement their efforts.
Draup for Sales tracks key service providers and their strategic/tactical movements to deliver sales intelligence at scale.
Our proprietary Sales Intelligence platform provides live updates on market movements, technology requirements, solution scope & other key parameters sector-wise and technology-wise. Users can monitor the dashboard to seize potential use cases arising across industries that can be executed smoothly using low-code platforms.
