No, custom connectors are not developed and compiled inside IdentityNow. Custom connectors are typically developed outside of the IdentityNow platform using a development environment and then tested and packaged before being uploaded to the platform. These connectors can be developed using tools provided by SailPoint, but the actual development process occurs externally, not directly within the IdentityNow environment.
Key Reference from SailPoint Documentation:
Custom Connector Development: Custom connectors are developed outside of the IdentityNow platform and then integrated into it for use.