How Customized Software Development Is Transforming the Financial Industry

The use of customized software has been gaining popularity within the financial industry in 2010. This surge in customized software development ultimately means that investment professionals will get more of the data they need, more quickly. Here, Knowledge Center contributor Rick Treese looks at how custom software development is changing the business strategy of CIOs, the use of data and the roles of internal development teams this year.

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In the past five years, we have seen an immense transformation in the design and functionality of financial software and, in turn, the way people use it. The newest trend we are seeing in 2010, and one with great staying power, is customized software development. A perfect storm of technological and economic factors have converged to make customization more attractive to companies in the financial industry and will, we think, result in a significant increase in demand for bespoke service offerings.

Why the surge in customized software development? As a rule, as technology matures, it becomes less risky. Developers now have access to a larger number of standardized, user-friendly development tools and frameworks. This makes software easier than ever to build, customize and deploy. This is true for both data and platforms; there is little "technological friction" for most corporate software requirements when using technologies that are now mature (such as Java or the .NET Framework).

With a larger array of proven technologies in the marketplace, CIOs and CTOs can experiment more aggressively with strategies and can be more accurate in their estimates of effort and cost. As a result, companies are more willing and able to adopt new custom application development.