Enterprises Turn to Advanced Low-Code/No-Code Platforms Shaped by AI, Reports ISG

According to a recently published research report by Information Services Group (ISG) III, enterprises are increasingly demanding low-code/no-code development platforms to create customized applications that meet their specific requirements.

The 2024 ISG Provider Lens™ global Next-gen ADM Solutions report reveals that businesses are looking for platforms that offer user-friendly interfaces for non-technical staff and robust tools for developing complex, enterprise-level software. AI integrations support many of these required features.

“Enterprises expect low-code/no-code platforms to enable rapid innovation that keeps them competitive,” stated Shafqat Azim, ISG partner and Americas lead for Digital Transformation. He noted that companies are increasingly seeking more flexibility, scalability, and security from these technologies.

AI enhances the low-code/no-code development process, enabling automation of decision-making and code generation, improving query responses, and identifying security issues. This integration facilitates the addition of AI and machine learning (ML) capabilities in applications. Moreover, Generative AI (GenAI) is starting to make development easier by creating visual elements based on developers’ preferences or descriptions, thereby empowering non-technical team members.

The report highlights that companies focused on low-code development seek platforms equipped with strong version control, project management, and real-time collaboration features. Data security and compliance are especially critical in regulated sectors; thus, enterprises expect low-code platforms to provide data encryption and access controls along with adherence to industry regulations.

Component-based architectures, which allow users to create applications by dragging and dropping pre-built modules, are becoming increasingly important in low-code platforms, according to ISG. This functionality enables developers and users to create reusable components and share best practices, ensuring these platforms remain relevant over time.

“Low-code development is a boon to enterprise collaboration,” explained Jan Erik Aase, partner and global leader at ISG Provider Lens Research. He noted that IT professionals and business users are forming cross-functional teams to align technical solutions with business goals.

No-code platforms are also evolving to meet more demanding needs, thanks to recent enhancements such as hybrid development capabilities. These features allow businesses to extend and customize their software with code when necessary, offering greater flexibility without sacrificing the advantages of no-code solutions.

The report addresses additional trends in low-code/no-code solutions, including a growing interest in self-healing application capabilities and the expansion of ecosystems through third-party integrations.

For further insights into the challenges enterprises face with ADM platforms—especially the need for integration with existing systems—read ISG’s recommendations in the ISG Provider Lens™ Focal Points briefing.

The 2024 ISG Provider Lens™ global Next-gen ADM Solutions report assesses the performance of 43 providers within two categories: Low-code Development Platforms and No-code Development Platforms.

Airtable, UiPath, and Zoho have been recognized as Leaders in both categories, while Appian, Betty Blocks, Creatio, GeneXus (Globant), Kissflow, Mendix, Microsoft, Newgen Software, OutSystems, Pega, and Retool have each been identified as Leaders in one category.

Additionally, Bubble and HCL Software have been labeled as Rising Stars, representing companies with a “promising portfolio” and “high future potential” in one category each, according to ISG.

The 2024 ISG Provider Lens™ global Next-gen ADM Solutions report is accessible to subscribers or available for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series uniquely combines empirical, data-driven analysis with insights from ISG’s global advisory team. This comprehensive research is designed to guide enterprises in selecting suitable sourcing partners while assisting ISG advisors in validating their market knowledge and making informed recommendations. The analysis currently encompasses providers operating globally and in several regions, including the U.S., Canada, Brazil, and Europe, with more markets expected to be included in the future. For detailed information on ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) III is a leading global technology research and advisory firm. Trusted by over 900 clients, including more than 75 of the top 100 global enterprises, ISG is dedicated to helping organizations achieve improved operational efficiency and faster growth. The firm specializes in services related to digital transformation, AI, cloud and data analytics, and risk management. Founded in 2006 and headquartered in Stamford, Connecticut, ISG employs over 1,600 professionals in more than 20 countries, known for their innovative thinking and expertise. For more information, visit www.isg-one.com.

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