Low-Code ROI: Measuring Business Value and Cost Savings
Explore how low-code platforms enhance development speed, reduce costs, and improve business adaptability, driving innovative growth.
Mar 25, 2025
Low-code platforms are transforming how businesses develop applications, with faster timelines, lower costs, and reduced reliance on specialized developers. Here’s what you need to know:
Faster Development: Build apps up to 10x quicker, cutting project timelines by 31% on average.
Cost Savings: Reduce development costs by up to 70% and maintenance expenses by 60%.
Efficiency Gains: Smaller teams achieve more, with 90% of low-code developers handling fewer than five app requests monthly.
Business Growth: Companies report a 58% revenue boost from customer-facing apps and faster market adaptation.
Quick Comparison
Metric | Traditional Development | Low-Code Development |
---|---|---|
Development Time | 6–12 months | Less than 1 month |
Cost Per App | $20,000–$60,000 | Around $3,000/month |
Maintenance Costs | Baseline | 60% lower |
Team Size | Large, specialized | Smaller, mixed-skill |
Low-code platforms not only save time and money but also enable businesses to scale, innovate, and improve customer experiences faster than ever.
Cost Savings from Low-Code Solutions
Faster Development Times
Low-code platforms significantly speed up development, cutting costs in the process. What once took 6–12 months can now be completed in just weeks.
Development Aspect | Traditional Development | Low-Code Development |
---|---|---|
Time to Market | 6 months - 1 year | Less than 1 month |
Initial Cost | $20,000 - $50,000/app | Around $3,000/month |
Development Team Size | Large specialized team | Smaller mixed-skill team |
For example, a German airport used low-code to reduce response delays by 90% and cut staffing expenses by 40%. Faster development cycles not only lower upfront costs but also reduce ongoing maintenance demands.
Reduced Maintenance Costs
Low-code platforms don't just save time during development - they also lower long-term expenses. According to Piotr Biedacha from Decerto, low-code applications simplify updates and reduce support costs by up to 60%.
Key benefits of simplified maintenance include:
31% less time required for system updates
Up to 60% savings in overall maintenance costs
Automated validation processes that minimize error-related issues
One healthcare provider saw a 40% drop in maintenance costs after adopting low-code solutions.
Less Reliance on Specialized Developers
Low-code platforms enable non-specialists to build applications, reducing the need for highly specialized developers.
"Growth in digital data, low-code development tools and artificial intelligence (AI)-assisted development are among the many factors that enable the democratization of technology development beyond IT professionals"
This shift translates into major cost savings:
Application development costs drop by up to 70%
Smaller teams can achieve the same productivity levels
A financial services company leveraged low-code to boost new product launches by 300%, showcasing how these platforms can transform resource allocation and efficiency.
How to calculate the cost and ROI of your internal business apps?
Business Benefits Beyond Cost Savings
Low-code platforms offer more than just cost savings - they bring a range of powerful advantages for businesses.
Speed to Market Advantages
Low-code platforms drastically reduce the time it takes to develop and deploy applications. According to Forrester, these platforms can be up to 10 times faster than traditional development methods. This speed gives businesses a critical edge in fast-changing markets, enabling them to act on opportunities quickly.
Here are some real-world examples:
Company | Project Timeline | Results |
---|---|---|
Stone Coast | 6 weeks | Deployed a complete fund administration app |
AgFirst | 16 weeks | Delivered the first process; subsequent ones 75% faster |
Banco Popular | 6 weeks | Delivered two processes with only two full-time staff |
SCOR UK | 6 weeks | Implemented a full claims process |
"Faster time to market delivers significant business advantages: lowering costs through streamlined development cycles, unlocking innovation by freeing up resources, and enhancing agility to adapt to market shifts and seize opportunities." - Anthony Daly, Bizagi
Beyond speed, low-code platforms also help businesses grow and adapt to changing conditions.
Growth and Adaptation Capabilities
Low-code platforms make it easier for businesses to scale and adjust to market demands. Companies using these tools can build solutions 56% faster than with traditional development approaches.
For instance:
Carrefour digitized HR processes across 30 countries in just three months.
Rabobank developed a custom agricultural loans application in four months, cutting the timeline by more than half compared to traditional methods.
Additional stats highlight the impact of low-code:
Businesses see an average 58% increase in revenue from customer-facing apps built on low-code platforms.
By 2024, over 65% of application development will rely on low-code tools.
This ability to adapt quickly also leads to better customer service.
Better Customer Service Results
Low-code platforms enhance customer service by enabling automation and personalized solutions. For example:
Addiko Bank reduced loan approval times from seven days to just three.
Aviva Insurance unified 22 systems into one interface, improving response times by a factor of nine.
The YMCA of Chicago uses Kissflow's platform to manage over 60 facility requests per month, with better tracking and efficiency.
Key improvements in customer service through low-code include:
Automated call routing and response systems
AI-driven tools to assist agents
Custom CRM platforms
Self-service portals for customers
Integrated chatbots for faster interactions
These benefits show how low-code platforms drive not only operational efficiency but also improved customer experiences.
How to Measure Low-Code Success
Speed and Output Measurements
To evaluate the efficiency gains from low-code platforms, organizations should track specific metrics related to development speed and output.
Metric | Improvement Potential | How to Measure |
---|---|---|
Development Time | Up to 10x faster | Compare project timelines before and after using low-code |
Project Completion Rate | 31% faster delivery | Monitor average deployment times |
Cost Reduction | 60–90% savings | Calculate per-application development costs |
Once speed improvements are clear, it's essential to validate these gains through user engagement and system performance.
Usage and Performance Stats
Assess the quality and impact of applications by focusing on:
Application adoption rate: Measure active users and how often the app is used.
Support ticket volume: Track reductions in user support requests.
User satisfaction scores: Collect feedback through surveys from both developers and end-users.
Application performance: Evaluate metrics like load times, response rates, and system reliability.
For example, McDermott's adoption of Kissflow highlights these metrics in action. They processed 23,000 items in their first year, with only 30 support tickets raised by 6,000 users.
Beyond usage and performance, tracking IT backlog metrics provides an additional layer of insight into operational efficiency.
Project Backlog Impact
Low-code platforms can drastically reduce IT backlogs. Research indicates that 90% of developers using low-code handle fewer than five application requests per month.
To measure backlog improvements:
Record the number of pending application requests.
Calculate the average time taken to resolve requests.
Track how many requests are managed independently by business users without IT support.
Caratlane's experience illustrates this shift. Their Chief Product Manager, Ajit Singh, shared:
"Developers in an organization are scarce. It's better to manage things ourselves, especially if we have short timelines."
– Ajit Singh, Chief Product Manager, Caratlane
Validating ROI and Efficiency Gains
To ensure the success of low-code platforms and validate their ROI, organizations should:
Compare costs and development times for apps built with and without low-code.
Review progress in digital transformation against set benchmarks.
Analyze time spent on support and maintenance tasks.
Gather feedback from business leaders on IT responsiveness and development speed.
Data shows that 84% of companies with strict enterprise requirements using low-code report a positive ROI. By tracking these metrics, organizations can clearly demonstrate the impact and value of their low-code initiatives.
ROI Calculation Methods
ROI Measurement Tools
To evaluate the ROI of low-code platforms, you can use vendor-provided calculators or frameworks like Forrester's TEI studies. These tools compare the costs and benefits of low-code solutions against traditional development methods.
ROI Component | Calculation Method | Typical Impact |
---|---|---|
Direct Costs | Compare platform costs to traditional development expenses | Up to 70% cost reduction |
Time Savings | Measure reduction in development hours | Up to 90% reduction |
Maintenance | Assess support and update cost differences | 60% lower costs |
Staff Efficiency | Evaluate developer productivity improvements | 123% average gain |
These methods help establish benchmarks for measuring performance and savings.
Industry Examples and Comparisons
Real-world examples highlight the measurable benefits of low-code platforms. According to IDC, Appian customers saw a 509% five-year ROI, with development cycles for new applications accelerated by 62% and new features by 72%.
Here are some notable success stories:
Worcestershire County Council: Achieved a 442% ROI with OutSystems, showcasing its effectiveness in the public sector.
McDermott Oil & Gas: Processed 23,000 items in one year with just 30 support tickets by using Kissflow across 15 departments.
Insurance Provider: Automated claims processing with no-code tools, cutting processing time by 80%.
Future Value Calculations
Low-code platforms also provide long-term benefits, including scalability and sustained productivity gains. A helpful formula for estimating ROI is:
ROI = ((Monetary Gain – Low-Code Platform Cost) / Traditional Development Cost) × 100
When calculating future value, consider these factors:
Digital Transformation Impact: Gartner predicts that by 2026, 75% of new application development will involve low-code tools.
Scalability: For instance, McDermott supported 6,000 users across departments with minimal support needs.
Productivity Gains: Citizen development programs have led to 50% faster application development in 71% of cases, with a twofold or greater speed boost in 29%.
Real-world data further supports these benefits. For example, an e-commerce company using a low-code platform saw a 25% increase in mobile sales and a 20% boost in user retention rates. Additionally, IDC reports that Appian customers generated an average of $14.8 million in additional revenue per organization.
These insights, combined with faster development, lower maintenance costs, and improved agility, illustrate the long-term financial and operational value of low-code investments.
Conclusion: Making Low-Code Work for Your Business
To get the most out of low-code platforms, align your goals with measurable results. When done right, low-code can speed up development cycles and reduce project backlogs.
Here are some key areas to focus on:
Strategic Integration: Ensure your low-code strategy aligns with your business goals and priorities.
Measurable Metrics: Keep track of performance indicators that directly affect your business outcomes. For instance, 71% of organizations using citizen development programs report at least 50% faster app development, with 29% achieving double or greater speed improvements.
"Once you take steps towards digitisation, change management across the organisation becomes much easier. People feel part of the transformation. They see the benefits of the initiatives you are running and are much keener to get involved." - Akash Khurana, CIO, McDermott
Platform Selection: Choose a platform that fits your technical needs and can grow with your business.
Security and Governance: Start with strong security practices like data encryption, detailed activity logs, and real-time monitoring. Set up clear data governance rules to maintain compliance and ensure data accuracy across your low-code environment.
These elements are essential for turning performance metrics into actionable business improvements.
The real challenge is finding the balance between fast development and maintaining strong governance. By focusing on these core areas, businesses can achieve lower costs, faster market entry, and smoother operations. Many success stories prove that adopting low-code properly can lead to better efficiency and measurable results.
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