Low-Code/No-Code Adoption Threatens Traditional Development Services
Definition
Low-code and no-code (LCNC) platforms are disrupting traditional custom software development by enabling non-technical users to build applications, directly threatening SMB development firm revenue. The problem: (1) clients increasingly consider LCNC platforms as alternative to custom development, reducing addressable market; (2) development firms must either compete on domains where LCNC fails or pivot to LCNC-based services; (3) margin compression as clients choose cheaper LCNC solutions over custom development; (4) SMBs lose junior developer work (lower-complexity projects that historically trained new developers); (5) shift requires reskilling teams from traditional languages to LCNC platform expertise. Gartner projects 70% of new business apps will use LCNC by 2025, directly impacting addressable market for traditional dev shops.
Key Findings
- Financial Impact: $200,000 to $600,000
- Frequency: continuous
Why This Matters
LCNC platform expertise and integrations, LCNC services and implementation partnerships, custom development for LCNC limitations (APIs, integrations, complex workflows), market repositioning consulting, specialization in industry verticals where LCNC insufficient
Affected Stakeholders
CEO/Founder, VP of Engineering/CTO
Deep Analysis (Premium)
Financial Impact
Data available with full access.
Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Critical Talent Shortage and Developer Retention
Rapid Technology Obsolescence and Skills Gap Management
Mounting Security and Compliance Liability Exposure
Cost-Benefit Pressure on Feature Prioritization and Delivery
Hyperscale Demand for Personalization Creates Delivery Complexity
Scalability Architecture and Future-Proofing Uncertainty
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