How Digital Transformation Impacts IT Business in Real-time?
IT is one industry that moves in a dynamic scenario with technology advancements and changing trends.
So, winning the race in this competitive scenario doesn’t come so easily and, would definitely need all around transformation that can drive business success. The answer IT industry found is Digital Transformation (DX/DT)!
As the name suggests, Digital Transformation brings an all-round business transformation built on digital capabilities, which includes a change in operating culture and redefined strategies through the implementation of digital technologies and applications.
Considering this potential, many companies have already begun their quest for perfect DX Strategy (infographic), while some are already reaping the benefits of the successful DX implementation.
Here, we bring to you some interesting facts that speak the Digital Transformation impact on IT business in the real-time:
As the surveys show, the global spending on Digital Transformation is expected to reach a USD 1.8 trillion by 2019 and further to USD 6 trillion by 2022, with a year-on-year growth rate of 17.8%. The spending growth across sectors is expected to be around 15-20%.
2) Business Transformation
By 2021, 80 percent of mid-large sized organizations are expected to change their culture in their digital transformation journey.
According to Gartner, 67 percent of organizations are either done with their business cultural change initiatives or in the process of doing so. Limitations in the current culture as a barrier to digital transformation happens to be their main concern.
67% organizations are looking for ‘strategic service providers’ in their DX journey.
3) Rise of Initiatives
DX initiatives are growing in popularity. As the leading surveys show, as many as 125,000 large organizations are already launching digital business initiatives.
IDC expects the percentage of enterprises creating advanced digital transformation initiatives will grow two-fold by 2020, from 22% (current) to almost 50%.
As per the surveys, 27% organizations currently possess a coherent digital strategy.
80 percent of organizations are expecting rise in their revenue with digital initiatives by 2020. CEO-level executives, in specific, are expecting their digital revenue to increase by more than 80% by 2020.
5) Corporate Strategy
CEOs have already begun efforts to take up digital initiatives through a clear digital vision for revenue-generating digital experiences. There is already a closing gap between B2B and B2C firms owing to the rapidly changing customer expectations.
As of 2018, 67% of the CEOs of Global 2000 enterprises were expected to have digital transformation at the heart of their corporate strategy.
Access to right talent and the ability to hire the right candidates at the right time and place is going to be a big competitive differentiator in the digital transformation trend. Enterprises willing to adopt DX are more likely for a two-fold expansion in the size of their software development teams, with key focus on new candidates with expertise in digital initiatives.
In this process, mobile app development, analytics and design are going to be most common for software development.
50% organizations are looking out for service providers assistance for DX-related skill development.
7) Shift in Expenditure
Around 50 percent of IT investments are likely to be around Digital Transformation initiatives, by 2020. As of 2018, already 35 percent of IT resources have already been moved towards creating various new digital revenue streams.
On the opposite side, increasing inclination towards digital efforts are going to bring a shift in organizational IT expenditure to the level of around 30% on risk, with security and compliance consuming at least 10% of IT staff dedicated to these activities.
There are many such ways that an effective Digital Transformation process can add value to your business. Looking for assistance?
- Data Strategy – A Key Checklist for Digital Transformation
- Digital Transformation: 6 Key Takeaways from Success Stories!
- 4 Basic Factors To Consider in Digital Transformation (DX) Implementation
- Global Digital Transformation (DX) Spending Forecast: USD 1.8 Tn in 2019, USD 6 Tn by 2022
- Top 9 Digital Transformation Trends for 2020