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The state of custom software development 2026: AI meets reality

Custom software is no longer a luxury. It gives you a strategic advantage in today's AI-driven world. We spoke to 850 senior IT decision makers to create a report that outlines both the future of custom software development (CSD) and how it will impact your business over the next 12 months.

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Get the 2026 CSD report

Key findings

AI is accelerating change across every industry, and many organisations are increasingly turning to custom software to leverage AI advances, scale effectively, and meet complex business needs.

70%

would choose custom software over COTS and integration is the top reason

43%

of enterprise businesses have insufficient in-house skills for agentic AI

50%

of participants say managing data is their biggest compliance challenge in CSD

What you'll discover

3 (1)-1

  • Insider insights

    How enterprise organisations are using custom software to support AI adoption

  • CSD investment drivers

    The key drivers behind investment in custom-built solutions

  • CSD challenges and risks

    The challenges and risks organisations face in an AI-driven environment

  • How to understand your skills gap

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  • Sector comparisons

    Differences in priorities across regions, industries and leadership levels

  • Trends for the next 12 months

    What this means for future technology, innovation and operating models

About the research

To understand how organisations are responding, NashTech commissioned independent research firm Vanson Bourne to conduct a comprehensive global survey of 850 enterprise IT decision-makers and Independent software vendors (ISVs). The findings provide a unique perspective on how enterprises and ISVs are leveraging custom software to succeed in an AI-first world.

  • Organisations with 500 – 9,999 employees

  • Leadership level: Board members, C-suite executives, senior management and mid-level managers

  • Departments: IT, DevOps, data and analytics, engineering and project management

  • Industries: Manufacturing, logistics and supply chain, hospitality, consumer packaged goods, retail trade, insurance, IT and technology and educational services

  • Regions: EMEA, North America and APAC
about the research

Expert insights

A must-have resource for technology leaders navigating digital transformation.

This report delivers practical insights, benchmarks and strategic guidance for CTOs, CIOs and senior technology leaders who are considering building custom software.

WHY NASHTECH

More than a software development company

If you need a software development company to provide expert engineers and developers to support your in-house team, we can do that. But what makes NashTech different is that we are a partner who understands your business.

We challenge assumptions, translate complexity into clear decisions and connect technology to real outcomes. Whether you’re building new products or transforming existing systems, we help you move forward with total confidence.

You get honest advice, practical solutions, a team that cares and a partner that is completely invested in your success.

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5

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Engineering experts

26+ years

Engineering excellence

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