{"id":2162,"date":"2022-08-17T09:48:17","date_gmt":"2022-08-17T09:48:17","guid":{"rendered":"https:\/\/raqmiyat.com\/?p=2162"},"modified":"2022-08-17T10:40:29","modified_gmt":"2022-08-17T10:40:29","slug":"whats-the-roi-of-low-code","status":"publish","type":"post","link":"https:\/\/raqmiyat.com\/whats-the-roi-of-low-code\/","title":{"rendered":"What\u2019s the ROI of Low-Code?"},"content":{"rendered":"
With the pressure to deliver new customer and employee digital experiences and adjust existing enterprise systems to cope with the market changes,\u00a0Forrester Research estimated<\/a>\u00a0that 75% of app development would use low-code platforms by the end of 2021.<\/p>\n From increased\u00a0developer productivity<\/a>\u00a0to improved corporate agility and faster go-to-market,\u00a0low-code benefits<\/a>\u00a0are plentiful compared to the cost and time it takes to create software with traditional development approaches. But,\u00a0what is the quantified return on investment (ROI) of low-code platforms for your business?<\/strong><\/p>\n What would you do differently if you found that:<\/p>\n Let me unpack each of these three claims based on the\u00a02022 Forrester TEI(\u2122) study<\/a>.<\/p>\n But first, a quick disclaimer: like any other software development technology, not all\u00a0low-code<\/a>\u00a0development platforms are created equal. Use cases, available features, developer experience, pricing model, even the targeted user can vary from platform to platform. So, the ROI of the different low-code platforms will also vary depending on several factors.<\/p>\n Similar to other five leading vendors that commissioned Forrester Consulting to conduct a study to discover their customers\u2019 ROI using their platforms, OutSystems also commissioned research to find out the ROI of its high-performance low-code platform.<\/p>\n This\u00a0TEI study<\/a>\u00a0is a Forrester Consulting analysis that evaluates the financial impact of adopting a technology. It considers the cost, benefits, flexibility, and risk factors that affect the investment decision.<\/p>\n The study is based on Forrester\u2019s interviews directly with OutSystems\u2019 customers using its low-code platform. Forrester Consulting then compared the results the customers reaped over three years with a composite, modeled organization based on the structure and resource characteristics of the interviewed organizations.<\/p>\n As Forrester says:<\/p>\n \u201cOutSystems reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester\u2019s findings or obscure the meaning of the study.\u201d<\/em><\/p><\/blockquote>\n All customers interviewed used traditional development approaches before adopting the OutSystems platform.<\/p>\n And here are the key findings.<\/p>\n <\/p>\n You can read the full\u00a0Total Economic Impact\u2122 (TEI) of OutSystems study here<\/a>.<\/p>\n While organizations are dealing with a worldwide developer shortage, OutSystems customers are able to\u00a0maximize the productivity<\/strong>\u00a0of their existing dev teams and\u00a0boost collaboration<\/strong>\u00a0between business and dev to get software delivered more often, just like digital natives organizations.<\/p>\n These development cycle savings can be 24% of customer total benefits, or up to 4.3 million dollars in the TEI study.<\/p>\n Key high-performance low-code features that reduce developer effort and time include:<\/p>\n Applications developed with OutSystems\u00a0cost less to maintain<\/strong>\u00a0and\u00a0change by design<\/strong>. The study also shows that these savings continue to accrue year-over-year. These savings are typically above 7% of customer total benefits and reached up to 1.2 million dollars in the TEI study.<\/p>\n The fundamental high-performance low-code features for these benefits are similar to those listed in the previous point, namely:<\/p>\n <\/p>\n As one of our customers presented to a large audience,<\/p>\n \u201cThe more you build, the less you have to build.\u201d<\/em><\/p><\/blockquote>\n Because the bigger share of new applications that you reuse and don\u2019t start from scratch.<\/p>\n This point often escapes new users of traditional dev or regular low-code platforms, so it is highlighted by Forrester in the report as the Portfolio effect.<\/p>\n By improving the efficiency and productivity of their developer resources, OutSystems customers can\u00a0launch new and impactful business initiatives to the market faster<\/strong>, such as customer-facing capabilities, as highlighted by one of the interviewees.<\/p>\n This way, organizations also reap the financial benefits of those initiatives months faster than they would with traditional development approaches.<\/p>\n With OutSystems, organizations can shorten the duration of development projects and launch internal initiatives that\u00a0improve the company\u2019s agility and efficiency<\/strong>\u00a0outcomes much faster.<\/p>\n These initiatives include tools to replace manual and time-consuming activities, leading to cost savings of 6.7 million dollars.<\/p>\n <\/p>\n Organizations can also save hundreds of thousands of dollars from ongoing vendor fees by using OutSystems to\u00a0build new applications\u00a0<\/strong>to replace legacy systems.<\/p>\n In addition to the quantified benefits mentioned above, companies that adopt OutSystems high-performance low-code platform also reap other benefits included in the TEI study. These benefits were mentioned by OutSystems customers but not yet quantified:<\/p>\n So many of the technical arguments can be justified with platform functionality, but the fundamental comparison question remains:<\/p>\n And this is where OutSystems’ high-performance low-code platform leads the pack of the main platforms in the\u00a0low-code market<\/a>.<\/p>\n For your team evaluating the ROI comparison among leading vendors, this research and the summary in the next chart can save your company money and your team lots of time.<\/p>\n\n
The Framework of Low-Code ROI<\/h2>\n
1. Cost Savings of 24%\u2014Up to $4.3 Million\u2014in\u00a0App Development\u00a0<\/strong><\/h3>\n
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2. Cost Savings of 7%\u2014Up to $1.2 Million\u2014in\u00a0Continuous App Evolution and Support<\/strong><\/h3>\n
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3. Incremental Income of $4.6 Million from Faster Time-to-Market of\u00a0New Business Initiatives<\/strong>\u00a0(~26% of Total Benefits)<\/h3>\n
4. Cost Savings Amount to 38%\u2014Up to $6.7 Million\u2014From Faster Time-to-Value for\u00a0Operational Efficiency Initiatives<\/strong><\/h3>\n
5. Cost Savings of $765,000 by\u00a0Replacing Legacy Applications<\/strong><\/h3>\n
Additional Unquantified Benefits: Security, Quality, Augmentation, and Mobile<\/h3>\n
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The ROI of High-Performance Low-Code vs. Competition<\/h2>\n
“How does platform X compare to competitors in ROI terms?
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