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Digital Revolution! 90% of Enterprises Increase their Digital Transformation Budgets

Cybersecurity Investment Estimated to Grow up to 6% in 2020
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A survey from the Tata Consultancy Services (TCS), a provider of IT services globally, revealed that around 90% of organizations are increasing their digital transformation budgets amid the pandemic. The survey “Digital Readiness and COVID-19: Assessing the Impact” found six digital capabilities as critical factors for organizations to withstand the effects of the outbreak, these include:

  • End-to-end digital customer experience (CX)
  • AI-based analytics to continually improve the CX
  • Core enterprise systems in the cloud
  • Highly automated core business processes
  • Digital sensors tracking products
  • Key partnerships in digital ecosystems

Key Findings:

  • Among shifts in technology spends due to the pandemic, companies reported maximum increases on collaborative technologies (65%), cybersecurity (56%), cloud-native technologies (51%) and advanced analytics (39%).
  • Higher levels of automation in core business processes is another priority area, already deployed at 23% of companies and under development at 44% of companies.
  • Prior to the pandemic, the average organization surveyed had only 9% of its workforce working mostly from home. That percentage has increased seven-fold and is expected to remain elevated through 2025, when the average company projects 40% of its employees will work largely from home.
  • While 68% of companies have seen revenue declines amid COVID-19, 90% of organizations have either maintained or increased their digital transformation budget.
  • Business initiatives around an end-to-end CX have seen most traction, already deployed at 25% of companies and under development at 44%. Similarly, the use of analytics and AI to improve CX is deployed at 24% and under development at 39% of companies.

The survey findings are based on the responses from 300 senior business leaders from enterprises across North America, Europe, and Asia.

“Before the pandemic, companies’ digital capabilities were rapidly becoming central to their success and business transformation initiatives. The study revealed how several enterprises were not as far along in developing a digital backbone as they hoped. Companies that had embraced digital transformation more whole-heartedly performed better during the pandemic and expect a faster rebound, whereas others are now focused on making necessary investments and racing to catch up,” said Rajashree R, Chief Marketing Officer at TCS.