Software Development Insights for 2026 and Beyond

Software development is steadily evolving. According to the 2025 State of Software Development report from Clutch, software development is the lead driver in digital transformation. In order for companies to stay relevant and competitive they must not only understand where the industry is today but where it is headed. 

At Pell Software, we recognize the shifts in both our work and our conversations with clients and developers. In this developing change in software development we recognize the importance of these trends in helping organizations thrive.

AI is Here to Stay

AI is no longer a future abstract idea, it is a core part of development workflows. The Clutch report highlights that โ€œ78% of developers use AI multiple times per weekโ€. Generative AI adoption is widespread across enterprise workflows.

At Pell Software we agree. We believe AI works best when we use it thoughtfully and purposefully. AI is capable of automating repetitive tasks, not as a replacement for solid software engineering. It is a tool that is used as a force multiplier that enables our team to focus on creative problem solving.

Custom Software in High Demand

While ready made SaaS tools have their place, demand for custom based software continues to grow, nearly doubling as fast as the overall software services market. Custom solutions allow for organizations to solve complex problems that off the shelf products cannot address.

Pell Software reflects this industry trend. We specialize in tailored systems that align with each individual businessโ€™s needs. Our ability to efficiently build what our clients need gives them the competitive edge that generic solutions cannot match.

Cloud Native Development 

Cloud spending is projected to hit over โ€œ$700 billion in 2025โ€ as more companies adopt cloud first architectures. 

Pell believes cloud native development is more than a technology choice, it is a business enabler. Our projects are developed on platforms like Microsoft Azure, allowing for secure, scalable applications without a large overhead cost that traditional infrastructure brings.

Importance of Regulatory Compliance

At Pell Software we believe organizations must integrate regulatory adherence into their development processes. This is why we have built compliance into our design of systems. Protecting client data and supporting evolving legal standing is more than just a technical requirement. It is nonnegotiable in our trustworthy and long lasting software. 

Culture Matters

A theme from the Clutch analysis is the growing developer talent gap. โ€œRoughly 87% of companies say they experience or expect shortages in development resources.โ€ 

Our approach at Pell is to build a culture that attracted developers who love building great software. We truly focus on the foundation of strengthening skills through providing developers with the tools and autonomy they need to grow. In this we are able to create a team of developers that are deeply committed to fostering collaboration. The result is a company of engaged developers that deliver more value to our clients.

Growth and Opportunity

Clutch projects that โ€œsoftware services will more than double in size by 2023โ€, resulting in the expansion of custom development and AI integration. As this industry continues to grow Pell Software will continue to stay committed to helping businesses navigate these changes. We will stay rooted in our philosophy of applying the right technology at the right time, not in chasing trends. At the forefront of everything we do is the business owners goals.

Stay Ahead

2025 has been a year of incredible momentum in software development. The journey ahead is demanding but filled with opportunity. At Pell Software we believe success comes from our technical excellence and client collaboration. 

If your organization is looking to build software through partnership, contact us today.


Reference

Clutch. The State of Software Development in 2025, updated August 25, 2025, by Hannah Hicklen. Clutch explores key trends, challenges, and forecasts shaping the software development landscape, including the Top 3 Trends Shaping Software Development Services in 2025. Available at:https://clutch.co/resources/state-of-software-development#top-3-trends-shaping-software-development-services-in-2025

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