2025 Insights and 2026 Trends
Disruption & Reduction in 2025
Over 1.2 million U.S. tech workers faced layoffs in 2025. Companies cut operational expenses while AI investment surged to record levels. It is estimated that $300+ billion was allocated globally toward AI infrastructure. AI strategic partnerships are helping companies identify AI opportunities and define product roadmaps and investment strategies.
Key trends that prevailed in recent AI Leaders Council research included the following:
- AI maturity
- Edge computing expansion
- Cloud cost optimization
- Cybersecurity evolution with AI
- Quantum computing emergence
We are seeing the AI Imperative as a clear focus for businesses moving forward. Our most successful efforts with clients hinge on leveraging AI to drive insights, automation, and predictive forecasting. Based on experience, our recommendation is to reengineer workflows around AI capabilities and treat them as infrastructure, rather than treating it as an add-on. To gain organizational buy-in, firms (exclusive of startups) are focusing on early AI projects with measurable results in areas like operations, finance, and customer engagement.
Growth Returns in 2026
As was the case for many of our partners, 2025 presented challenges. Several of our long-term clients reduced headcount, and not just on their development teams. Others paused projects as they assessed how to best position themselves for AI implementation success. However, as we enter 2026, we’re seeing a significant uptick in business, and notably, the nature of the work is evolving. It appears that 2025 was the beginning of a strategic shift and that existing clients, and new ones alike, are beginning to ramp up with higher hopes and new initiatives.
Rather than simply providing development resources, we’re increasingly being asked to serve as technical advisors and strategic partners. Our engagements now frequently begin with consulting services:
- AI strategy: Helping organizations define AI projects and estimate ROI
- Technology assessments: Evaluating current systems for efficiency, scalability, and AI readiness
- Vulnerability analysis: Identifying security gaps and technical debt that impede progress
- Roadmap development: Creating phased implementation plans that balance innovation with operational stability
We’re taking more of a technical leadership role than ever before, helping partners navigate complex decisions about architecture, technology selection, and implementation approaches.
New Trends in Client Projects
AI & Quantum Computing
The projects hitting our doorstep reflect the broader industry trend. While we continue to excel at traditional full-stack development, mobile applications, and cloud infrastructure, some of the most exciting new work falls into two categories: AI and quantum computing. Two members of our professional network (executives at Google and IBM) are already working closely with the top US firms on quantum projects. Here is a sample of some of our work:
AI-Driven Operational Intelligence
One recently launched engagement involves creating an AI-powered operational intelligence platform. It aims to aggregate data from multiple enterprise systems, including ticketing platforms, IT service management tools, and device management systems, in order to provide actionable recommendations. This isn’t simply a reporting dashboard, but a proactive intelligence that offers insights into issues before they escalate. This is an exciting step at automating operational decision-making, and it attempts to position AI as a collaborative partner.
Quantum-Enhanced Authentication Systems
Perhaps most unique is our entry into quantum computing applications. We’re currently developing a software-only MVP for a next-generation authentication infrastructure that integrates quantum physics-based transaction security with AI-driven adaptive threat intelligence.
The system creates secure authentication flows that are exponentially more difficult to compromise than traditional methods. While quantum computing is still emerging, forward-thinking organizations are building the software infrastructure now to be ready for when quantum hardware becomes more accessible.
These projects represent precisely the type of complex, cutting-edge work that requires deep technical expertise and strategic thinking.
Partnership in Transformation
First Factory Partner Referral Program
First Factory offers both partner and client referral programs where you can earn rewards by introducing companies that could benefit from nearshore software development support. Contact us to discuss how you can earn rewards.
Read more about about our Partner Referral Program.
For existing clients, check out our Client Referral Program details.
More than a Vendor, a Trusted Partner
As companies’ needs shift to higher complexity projects, they require strategic partners who understand both the technical possibilities and the business imperatives. Organizations need partners who can assess, advise, architect, and execute—all while remaining flexible as requirements evolve and technologies emerge.
At First Factory, we’ve always believed that the best software solutions are built on transparency, communication, and mutual commitment to success. As businesses embrace AI and other transformative technologies, that philosophy matters more than ever.
Whether you’re beginning your AI journey, optimizing your technology stack, building the next generation of your product, or exploring emerging technologies like quantum computing, we’re here to help you navigate the complexity and capture the opportunity.
Why Partner with First Factory?
- Nearshore advantage: Costa Rica-based team operating in US time zones (only 1-2 hours behind Eastern Time)
- Over 175 talented professionals: Software engineers, DevOps Engineers, QA engineers, Designers, Product Managers, and Business Analysts
- Average client tenure of 3+ years: More than 25% of clients have been with us for 5+ years
- 30-day satisfaction guarantee: On all new resources throughout the engagement
- SOC 2 Type 2 certified: Enterprise-grade security and compliance
- Low employee turnover: eNPS in the top 10% of companies globally
- Five-time Inc. 5000 honoree: Recognized for consistent, sustainable growth
- Carbon Neutral: We run lean and keep it green with zero carbon emissions annually
- Senior leadership accessibility: Direct access to our executive team throughout your engagement
If you have product development needs—from AI implementation to cloud optimization to full-scale application development—consider the nearshore solutions team at First Factory for design, development, project management, and product ideation.
