Software development and tech services in the cross-hairs as AI marches on
- ID
- 15969
- Status
- summarized
- Published
- 20 Aug 2026, 6:15 PM
- Fetched
- 20 Aug 2026, 10:43 PM
- Provider
- The Register
- Category
- technology
- Original URL
- https://www.theregister.com/ai-and-ml/2026/08/20/software-development-and-tech-services-in-the-cross-hairs-as-ai-marches-on/5289668
- Source URL
- https://www.theregister.com/headlines.atom
Summary
- Score
- 6.5
- Created
- 20 Aug 2026, 10:44 PM
- Tags
- Audience
- developersvibe_coderssaas_founders
What happened
Forrester research warns that business transformation, software development, and tech implementation are among the tech job categories likely to be hit hardest by AI, while enterprise software will be reshaped rather than displaced. Only three market categories — infrastructure; data and AI; and identity, access, and network security — are positioned for clear growth; all others will be forced to adapt. Application development tooling, low-code platforms, content management systems, and IT services (including Oracle, Salesforce, SAP, and Workday implementation) are described as directly in the path of genAI code development.
Why it matters
For founders and developers in Malaysia's services and outsourcing sector, Forrester's specific call-out of implementation work for Oracle, Salesforce, SAP, and Workday as facing headwinds signals that SI-style revenue models built on labor-intensive customization are under structural pressure. Builders should evaluate whether to shift capacity toward the three growth categories Forrester names — infrastructure, data/AI, and security — rather than doubling down on application development tooling or low-code platforms, which Forrester places directly in genAI's path.
Discussion angle
Which parts of a typical Malaysian tech services portfolio are defensible against genAI substitution — and whether the three growth categories Forrester names (infrastructure, data/AI, security) are realistic pivot targets for local firms currently dependent on Salesforce/SAP/Oracle implementation revenue.