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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

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

About the research

AI is accelerating change across every industry. Many organisations are increasingly turning to custom software to leverage advances in AI to scale effectively and meet complex business needs.
 
To understand how organisations are responding, NashTech commissioned independent research firm Vanson Bourne to conduct a comprehensive global survey. The findings provide a unique perspective on how enterprises and ISVs are leveraging custom software to succeed in an AI-first world.
 
This report delivers practical insights, benchmarks and strategic guidance for leaders navigating digital transformation.
2026 CSD Report

What you'll discover

By downloading this report, you’ll discover:

  • How enterprise organisations are using custom software to support AI adoption

  • The key drivers behind investment in custom-built solutions

  • Challenges and risks organisations face in an AI-driven environment

  • Differences in priorities across regions, industries and leadership levels

  • What this means for future technology, innovation and operating models

Who is the resource for

Survey respondents

  • 850 enterprise IT decision-makers surveyed globally

  • Organisations with 500 – 9,999 employees

  • Regions covered: EMEA, North America and APAC

  • 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

  • Additional insights from independent software vendors (ISVs)

CSD report open

Expert insights

A must-have resource for CTOs, CIOs and senior technology leaders who are considering building custom software.

Get the complete findings, charts and practical recommendations.

WHY NASHTECH

A partner focused on outcomes, not outputs

We don’t just implement technology, we solve business problems. Our teams combine deep technical expertise with a practical, human approach to deliver solutions that work in the real world, not just on paper. 

We’re your partner for long-term transformation - many of our client relationships span years because we focus on delivering lasting value, not short-term consulting engagements. And with more than 26 years of delivering complex technology solutions, we understand how innovation works in real organisations - not just in theory. You get honest advice, practical solutions, a team that cares and a partner that is completely invested in your success. 

NashTech Team

4.9★

Clutch rating

63

Client net promoter score

5

Global delivery centres

2K+

Engineering experts

26+ years

Engineering excellence

Insights

Expert insights, practical value

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Why custom software development is now strategically important

For years, enterprise technology strategy followed a familiar pattern: buy proven platforms, configure where necessary, and avoid the perceived risk of building from scratch. That model is being quietly but decisively rewritten, and with leaders under more and more pressure to grow revenues, differentiation through custom software and AI, is critical. NashTech’s global study of 1,000 technology decision-makers shows just how AI is accelerating changes in technology strategy, with 85% see AI as an immediate priority in custom software development. Even more telling, 97% believe AI has made custom software more accessible than ever before. The barriers to building have fallen, but the strategic stakes have risen.

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NashTech Connect 2026: conference highlights

Event overview On 26 February 2026, ~300 guests and expert speakers gathered in London, UK, for the inaugural NashTech Connect Conference. The central theme of the event was around unravelling the game-changing potential of AI and the art of differentiation through custom software. Against a backdrop of anticipation and excitement, technology leaders mingled, exchanged insights, and left with actionable strategies to drive their organisations forward (along with a little bit of magic!).

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