Executive Summary
The emergence of next-generation generative artificial intelligence (GenAI) platforms is revolutionizing custom software development (CSD). What began as a tool for efficiency gains has rapidly evolved into a powerful catalyst for innovation, fundamentally altering how software is conceived of, built, and maintained. GenAI is not just accelerating development timelines; it is also redefining the very nature of custom software by enabling unprecedented levels of precision, security, and adaptability. Enterprises are now able to create more-tailored, high-performing solutions that meet the exacting demands of their business environments, all while mitigating risks and reducing costs.
This Market Overview examines the transformative impact of GenAI on CSD, highlighting how service providers are transitioning from traditional service-centric models to software-centric strategies that fully leverage AI across every stage of the software development lifecycle (SDLC). The shift represents a significant departure from past practices, with AI-driven automation and intelligence now playing a central role in design, coding, testing, and ongoing maintenance. For technology leaders and decision-makers, understanding this evolving landscape is crucial. The insights provided in this report will equip them with the knowledge needed to navigate the complexities of this new era, make informed strategic decisions, better understand the leading CSD services vendor landscape, and capitalize on the opportunities GenAI presents for CSD.
