IT service companies (ESN) are facing several major challenges in the current context of digital transformation.
To address these issues, IT service companies are increasingly turning to Low code, a proven software development method that allows faster application development. This new approach to application development challenges the traditional model. Let's explore why they are choosing Low Code.

01. Reduced costs and accelerated delivery.
Nowadays, it is crucial to reduce the time between expressing business needs and realizing them with tools and projects. The main advantage of Low code lies in the speed it offers while maintaining a high level of quality, comparable to traditional stacks like Java/Angular, for example. For the client, projects are delivered more quickly, resulting in fewer billable days. Moreover, the daily rates are often comparable to those of projects developed using traditional technologies. By using Low code platforms, IT service companies can deliver projects in half the time compared to traditional development methods. The acceleration factor differs for each project and depends on its specific requirements. Successful projects lead to satisfied clients who are likely to engage the company’s services again. And customer retention, especially in B2B tech, is crucial due to increasing competition.

02. The right person at the right time.
IT service companies have been facing an IT resource shortage for several years, often leading to fierce competition to recruit the best talent. IT service companies must continually search for but also retain the top profiles in the market. Traditionally, the risk associated with not having the right profile available at the right time for a client, possibly due to ongoing assignments, can be challenging. Low Code reduces this dependency. By delivering application projects more quickly, resources are more available and can sometimes meet specific needs at a given moment. At a moment when a business person has a precise demand within tight deadlines. Moreover, developers doing Low code development can also do traditional ones. Their expertise encompasses Low Code but is not limited to it. Low Code is an additional skill set that addresses a genuine market need.

03. Markup on license costs.
Another economic reason for IT service companies to adopt Low code is the potential to gain margins on the licenses of the platforms used. Depending on the partnership with various providers, an IT service company can add a markup ranging from 10% to 30% on the cost of licenses while providing services on the platform. This markup represents a significant additional revenue stream, making the investment in Low Code even more attractive.

Conclusion : The adoption of Low code by IT service companies is not only a response to the demands for rapid and high-quality development, but also a strategic move for them to:→ expand their service offerings→ improve resource management→ take on more projects→ retain clientsAlthough this trend is not yet universal, many IT service companies in France and elsewhere have started to integrate specialized Low code teams, demonstrating the success and viability of this approach (CGI, Capgemini, or Gutilab for example).
Therefore, it is a model that works if one truly invests in this approach.