TeamLease Digital invests ₹5 million to set up virtual ‘low-code-no-code’ delivery centre

TeamLease Digital, an IT staffing firm, said that it will be investing ₹5 million to build a virtual delivery centre to facilitate the adoption of low-code-no-code (LCNC) tools for the IT industry. The company will invest this amount in the initial phase and plans to infuse further capital in the coming fiscal, it said.

Low-code/no-code development platforms are emerging as an alternative facilitator to fill the talent shortage that the industry is currently facing in terms of software developers. The platformshave gotten traction due to their ease of use, allowing both citizen and enterprise developers to drag-and-drop application components to construct mobile or web apps swiftly.

In a February 2021 report, analyst firm Gartner said that the global LCNC market stood at $13.8 billion in 2021 and is expected to grow at a CAGR of 28% to $37 billion by 2025. Meanwhile, the LCNC market generated $400 million revenue in FY2021, growing at a CAGR of 15%, according to a March 2022 study by Nasscom and Nagarro. However, TeamLease Digital’s research paper suggests that 70% of India’s LCNC revenues are currently from global markets.

The staffing company said that India has over 150 LCNC players, vast majority of which are bootstrapped start-ups. With the necessary interventions, India has a potential to generate $4-$4.2 billion revenue from the LCNC market by 2025, which will account for 10% of the global market, said the company. 

“Low code no code is an extremely enterprising avenue for the IT industry, yielding promising results for companies, while creating employment opportunities for job seekers. LCNC has enabled organisations to rapidly adapt and respond to diversified business conditions,” Sunil C, Chief Executive Officer, TeamLease Digital, said.

Sunil said that companies who have adopted LCNC have seen over 7 times reduction in development and deployment time, 3-fold reduction in development costs, 1.5 times increased productivity and 30% increase in return on investment (ROI).   

Industries such as banking, financial services and insurance (BFSI), healthcare, fintech and large IT services companies are currently the key consumers of LCNC platforms. Now, with the market at the cusp of exponential growth, it is imperative to create dedicated LCNC delivery units. Our investment is towards this goal. 

LCNC industry is also adding more jobs to the IT industry, especially for budding and amateur developers. Currently, there are approximately 16,500 open jobs in this domain for about 9,000 job seekers. In fact, TeamLease noted, by 2025, close to over 40,000 profiles will emerge for LCNC roles with exciting salary packages. A low code no code developer can earn between ₹15-18 lakh per annum, with 3-5 years of experience and ₹18-25 lakh per annum with 7-10 years of experience. 

Sunil explained that it needs minimal programming skills along with basic knowledge of web/cloud-based applications with a bachelor's or masters’ degree in computer science or similar field is an added advantage to become a LCNC developer.

As the industry grows, up-skilling talent to meet industry requirements will also be a game changer. “We have signed memorandum of understandings (MoUs) with leading edtech companies, including our in-house firm TeamLease Ed-tech to help build the supply chain for LCNC,” said Sunil.

“We are also looking at adopting non-engineering graduates, up-skilling and placing them as citizen developers in the LCNC space,” he added.

In India, players like Zoho creator, DronaHq, Pegasystems, Appian have come up with solutions to fulfill the growing need for such low-code, no-code platforms.