Is Low-Code a Solution for a Digital Skills Shortage?

Is Low-Code a Solution for a Digital Skills Shortage?

Since the beginning of the 2000’s, the world underwent rapid digitalisation. Having an understanding of how the online world works, from the connectivity of the internet to building a website and applications, became critical for businesses and individuals. Due to the complexity and various skills required to be adept in software development, there is a shortage of skilled talent in the IT workforce. 

To put things into perspective, the global IT outsourcing market was worth an estimated $92.5 billion in 2020, and the demand for software developers in the US alone is looking to increase by 22% until 2030, highlighting the need for and value of skilled talent in software development. 

Due to the rapid digitalisation and digital transformation of our daily lives and of businesses, developers and programmers are extensively sought out. In response to the increasing demand for digitally and technologically skilled professionals and the lack thereof, low-code and no-code (LC/NC) platforms were developed as a means to facilitate the closing of this gap. LC/NC refers to approaches for creating and building applications by utilizing user-friendly drag and drop tools, which minimize or remove the requirement for traditional software developers.

LC/NC development platforms democratize application development and empower a broader audience of creators. They are enabling individuals with minimal coding experience to actively participate in the development process. 

Leveraging these platforms and tools may be especially helpful for Cyprus, which ranks among the lowest in the EU for adults with basic knowledge in digital skills. In a global perspective, Ernst & Young's released a report indicating that 81% of “surveyed organizations acknowledged encountering a shortage in “power user or developer skills”.

In recent years, LC/NC development has experienced a meteoric rise as organizations strive to accelerate their digital transformation endeavors. According to Gartner, the global market for these platforms is estimated to total just under $30 billion in 2023, reflecting a near 20% increase compared to 2022. 

These innovative platforms offer a visual interface and pre-built components that streamline the application development process, reducing the need for extensive coding expertise. By leveraging intuitive drag-and-drop functionality, individuals can rapidly assemble applications, utilizing pre-existing building blocks and seamlessly integrating data sources.

For example, creating a website became phenomenally easier through platforms such as Wordpress, Wix, or Squarespace. Today, these platforms boast millions of websites created through them, with several in the top 100 thousand in traffic. In this sense, people without the necessary skills and knowledge to build a website from scratch can build one through a low-code platform such as those mentioned above. By visually selecting modular components, people can now simply drag-and-drop their desired elements to piece together their own website.

One of the primary advantages of LC/NC development is its potential to democratize innovation. Traditional software development often requires specialized skills and significant time investments, limiting the pool of contributors to a select few. However, LC/NC platforms dismantle these barriers, allowing subject-matter experts, “citizen” developers, and even business users to actively participate in the creation of software solutions. 

As Airtable co-founder Andrew Ofstad stated, “no-code lets anybody build compelling software solutions without having to be a developer or rely on IT. There’s that shortage, that gap in the market, that no-code tools are helping to fill.”

By enabling a wider range of individuals to build applications, organizations can tap into diverse perspectives and accelerate the pace of innovation. This alignment between business and technology stakeholders fosters collaboration, increases efficiency, and enhances overall project success rates.

The traditional development cycle can be a lengthy process, often resulting in delayed product launches and missed market opportunities. LC/NC platforms address this challenge head-on by significantly reducing development timelines. 

Renowned thought-leader in the IT industry, Tom Davenport, wrote in an Harvard Business Review article that “no-code software is suitable for use by nontechnical businesspeople, sometimes known as “citizen developers.” For many companies, this helps them digitize and automate tasks and processes faster than trying to hire and onboard hard-to-source development talent.”

With ready-to-use components, reusable templates, and automated workflows, developers can rapidly prototype, iterate, and deploy applications. This accelerated time-to-market empowers organizations to respond swiftly to changing customer demands and gain a competitive edge in their respective industries. Low-code has also been found to reduce costs for firms, as found in a report from KPMG, stating that “53% state that low-code has helped the company cut total and operating costs.”

While LC/NC development offers numerous advantages, it is essential to recognize its limitations. Complex applications with unique functionalities may still require custom coding or integration with existing systems, necessitating the involvement of professional developers. 

Chief Technology Officer at Unit4, Claus Jepsen notes, “the challenge comes when you need to connect to systems that don’t use open AIPs. Unfortunately there are a lot of these.” Additionally, low-code platforms may have constraints regarding scalability, security, and customization. It is crucial to carefully evaluate these limitations and select the appropriate tools based on the project's specific requirements.

LC/NC development has been, and continues empowering creators and reshaping the way software is built. By making innovation more accessible, accelerating time-to-market, and fostering collaboration between IT and business users, these platforms are revolutionizing the software development landscape. Despite these incredible capabilities, they are not a silver sword to the digital skills gap, as IT professionals are required for tasks of greater complexity and urgency.

As technology continues to evolve, low-code development will play an increasingly vital role in enabling organizations and individuals to adapt quickly, innovate efficiently, and meet the ever-growing demands of the digital age. Technology exists to help us achieve our goals, not to replace us, and LC/NC opens the door of development to everyone to create with less limitations.

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