Hexaware Positioned as a Visionary in the 2026 Gartner® Magic Quadrant™ for Custom Software Development Services
Hexaware Positioned as a Visionary in the 2026 Gartner® Magic Quadrant™ for Custom Software Development Services
Gartner, Magic Quadrant for Custom Software Development Services, By Jaideep Thyagarajan, Ryan McKinney, Nathan Davie, 7 October 2026. Gartner and Magic Quadrant are trademarks of Gartner, Inc. and/or its affiliates. Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose. This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Hexaware.
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The challenge in enterprise software development is evolving. AI-assisted coding tools can swiftly create, clarify, modify, and document code. However, faster code generation doesn’t guarantee faster software delivery.
It’s still necessary to refine requirements, evaluate architecture decisions, conduct code reviews, run tests, enforce security measures, and govern releases. Improving one part of the process while leaving the rest unchanged often just shifts the bottleneck elsewhere.
The difference lies between AI for software development and fully embracing AI-first engineering. While coding assistants enhance specific tasks, AI-first engineering reimagines the flow from business objectives to deployment. To speed up enterprise software development, leaders must streamline the entire SDLC, not just the coding interface.
AI’s impact on software development goes beyond speeding up coding. According to McKinsey’s research covering nearly 300 publicly traded companies, top-performing organizations achieved 16%–30% improvements in productivity, time to market, and customer experience, alongside 31%–45% gains in software quality. The difference wasn’t in adopting tools; these companies integrated AI throughout the SDLC and restructured their workflows and roles to maximize its benefits. The crucial question for enterprises is whether gains in developer-level productivity translate across the entire delivery process.
But the enterprise question is whether those task-level developer productivity gains hold up through the rest of the delivery process.
For instance, McKinsey discussed an experiment in which a streamlined team comprising one product manager and three developers worked within a redesigned, AI-focused workflow to complete a software redesign in just four days. In contrast, two traditional scrum teams, four times larger, took four weeks to accomplish the same task.
The takeaway isn’t that every enterprise can expect identical results, but that simply increasing coding speed offers limited benefits if requirements, reviews, testing, security, and releases remain at their previous pace. While AI coding assistants can accelerate individual tasks, an AI-first engineering approach reduces friction across the entire software development lifecycle.
As code becomes easier to generate, precision about what to build becomes more valuable.
Intent-led engineering translates business goals, constraints, user needs, and acceptance criteria into a form that people and AI agents can use. AI can organize customer feedback, identify recurring pain points, draft user stories, generate acceptance criteria, and create early prototype options before detailed engineering begins.
This can reduce translation across handoffs and shorten the path between discovery and development. But product leaders and domain experts still own prioritization, business context, and customer value. Clear intent also reduces the risk of teams building the wrong thing faster.
The shift matters because AI-first engineering changes where engineering time creates the most value. When machines can produce implementation options quickly, human expertise becomes increasingly important in defining the problem, evaluating trade-offs, and deciding what should reach production.
Architecture can slow delivery when critical knowledge is static, fragmented, or held by a few specialists. AI-first engineering can make that knowledge easier to create, explore, and maintain.
AI tools can draft system diagrams, document dependencies, generate initial application programming interface contracts, compare architectural options, and assess proposed changes against established patterns. The objective is not to delegate architecture to a model. It is to shorten the path from technical question to informed decision.
This becomes particularly relevant to legacy application modernization. AI-assisted reverse engineering can summarize unfamiliar code, trace dependencies, surface undocumented business logic, and identify areas that warrant deeper analysis.
Hexaware’s Zerovity™ creates a code-grounded view of application architecture, dependencies, and business logic, giving teams a reusable knowledge base for maintenance, modernization, and transformation. Teams can use that understanding to modernize incrementally and reduce technical debt rather than forcing a high-risk, all-at-once rewrite.
A strong platform engineering foundation makes these capabilities more repeatable. Approved templates, reusable environments, engineering standards, observability, and self-service workflows give teams a predictable path from design to deployment. AI performs better when the engineering environment provides reliable context, reusable patterns, and clear boundaries.
Speed is sustainable only when quality moves with development, not after it.
AI-driven testing can generate unit and integration tests from requirements, propose edge cases, analyze failed test logs, and identify likely regression areas. Combined with CI/CD automation, these capabilities shorten feedback loops and reduce manual handoffs between development and quality teams.
This shift is already producing measurable outcomes. In one Hexaware engagement with a global health IT organization, generative AI-led development and testing contributed to a 60% faster launch of new application features, while test-scenario coverage reached 100% for certain applications with a 90% reduction in effort. The engagement also delivered 30–50x productivity gains in manual test design and 5x gains in test-data preparation.
AI can also summarize pull requests, flag inconsistencies with established patterns, and identify missing documentation. Senior engineers still need to evaluate business logic, architectural alignment, reliability, and maintainability. AI-generated code should be treated as an engineering artifact that requires validation, not as inherently production-ready output.
The same principle applies to security. An AI-powered secure SDLC brings controls closer to where engineering decisions happen through approved tool access, repository guidance, dependency scanning, secret detection, static analysis, policy checks, and human approval for high-risk changes.
The objective is not to remove governance. It is to embed governance into the engineering flow, so secure, compliant paths do not become avoidable release-stage bottlenecks.
AI-first engineering changes the nature of engineering work before it changes the organization chart.
Developers can spend less time on boilerplate, repetitive analysis, basic test creation, and documentation. Their work shifts toward problem decomposition, systems thinking, evaluating AI-generated output, resolving complex trade-offs, and owning production outcomes.
Architects can focus more attention on coherence and technical standards. Product leaders can concentrate on intent and value. Security and platform teams can encode reusable guardrails rather than entering the process only when work reaches a review gate.
Some organizations may find that smaller, more cross-functional squads can move effectively when AI agents absorb repeatable activities. That does not mean every enterprise should reduce headcount or eliminate specialist roles. The appropriate model depends on product complexity, regulatory requirements, risk, and engineering maturity.
The more useful question is where human judgment creates the greatest value and where AI can remove repetitive effort, waiting, and coordination.
That distinction matters. Better developer productivity should create greater engineering capacity and faster outcomes, not simply more generated code.
Enterprises do not need an organization-wide AI rollout to begin. They need a measurable delivery problem.
Start by mapping the current SDLC and identifying where work waits. The constraint may sit in requirements refinement, environment provisioning, code review, test execution, security approval, deployment, or incident triage.
Next, select one or two value streams where teams can test AI-first practices and compare the outcome against an agreed baseline. Define acceptable AI use, data-access rules, human-review requirements, repository standards, and secure development practices before scaling.
Successful practices can then become reusable playbooks: repository-level instructions, prompt patterns, architecture templates, test approaches, platform engineering capabilities, and CI/CD automation that teams can apply consistently.
Measurement should focus on software flow rather than AI activity. Lead time for changes, deployment frequency, change failure rate, mean time to recovery, rework, security findings, developer experience, and customer outcomes offer a more useful picture than lines of AI-generated code or prompt volumes.
The objective is not to prove that an AI tool can create code. It is to determine whether the engineering system can turn business intent into production outcomes faster and more reliably.
The opportunity to speed up software development does not come from asking engineering teams to produce more code. It comes from reducing the waiting, rework, handoffs, and ambiguity surrounding code.
AI-first engineering connects intent, architecture, AI-assisted coding, AI-driven testing, platform engineering, CI/CD automation, security, and operational feedback into a more continuous engineering model. AI can absorb repeatable work and accelerate analysis. People remain accountable for business intent, architectural judgment, quality, security, and the software delivered to customers.
For leaders evaluating software development services, the objective should not be AI adoption for its own sake. It should be an engineering system that can move from business need to production outcome faster while preserving the security, resilience, quality, and maintainability enterprise software requires.
Organizations need clear engineering standards, reliable source control, automated testing, secure development practices, defined AI usage policies, and visibility into their current delivery flow. Teams should understand existing bottlenecks before determining where AI-first engineering can create measurable improvement.
DevOps improves collaboration and automation across development and operations. AI-first engineering builds those practices by applying AI across requirements, architecture, coding, testing, security, release, and operational feedback while retaining human accountability for decisions and production quality.
Start with bounded use cases such as test generation, code-review assistance, pipeline configuration, documentation, or log analysis. CI/CD automation should apply the same access controls, testing standards, automated checks, approval gates, and observability requirements to AI-generated changes as it does to human-authored changes.
Yes, legacy application modernization can benefit from AI-assisted code understanding, documentation, dependency analysis, test creation, and modernization planning. Human review remains critical where applications are poorly documented, tightly coupled, or business-critical.
A consulting partner can assess delivery bottlenecks, prioritize use cases, establish governance, design platform and automation patterns, run measurable pilots, and build reusable practices for broader adoption. The value of software development services should ultimately show up in delivery flow, software quality, operational resilience, and business outcomes.