Canada Digital Services: Utilizing Emerging Technologies to Power a New Era of Growth

Canada’s strong digitalization drive is accelerating generative AI (Gen AI) adoption, backed by significant federal government and Canadian enterprise investments. Efforts are intensifying to position Central Canada as a leading tech hub while expanding broadband access across the Northwest Territories and British Columbia’s remote and rural areas. With an increased emphasis on cybersecurity, addressing the digital talent divide, and advancing sustainability, the Canadian government and businesses are collaborating closely with service providers to develop innovative digital solutions and enhance the customer experience.

Both demand-side and supply-side trends are covered in our Canada Digital Services 2024 Market Insights™ and Canada Digital Services 2024 RadarView™, respectively. These reports present a comprehensive study of digital service providers in Canada, including top trends, analysis, and recommendations. It takes a close look at the leaders, innovators, disruptors, and challengers in this market.

We evaluated 41 service providers across three dimensions: practice maturity, investments and innovation, and ecosystem development. Of the 41 providers, we recognized 21 that brought the most value to the market during the past 12 months.

The reports recognize service providers across four categories:

• • Leaders: Accenture, CGI, IBM, Infosys, and Wipro
  • Innovators: Eviden | Atos, Capgemini, Cognizant, HCLTech, TCS, and Virtusa
  • Disruptors: Adastra, Compucom, Fujitsu, and Tech Mahindra
  • Challengers: DXC, LTIMindtree, Mphasis, NTT DATA, TELUS Digital, and UST

Figure 1 below from the full report illustrates these categories:

“Gen AI, bolstered by federal investments, is heralding an unparalleled wave of innovation, catapulting Canadian enterprises into a new digital age,” said Robert Joslin, Avasant managing partner. “To remain competitive, firms must utilize Gen AI to reimagine possibilities, drive cost efficiencies, and enable top-line growth in the years ahead.”

The reports provide several findings, including the following:

• • About 85% of Canadian enterprises are significantly investing in Gen AI to enhance customer experience and optimize business workflows.
  • Central Canada, particularly Toronto and Montreal, has solidified its position as a global tech hub, attracting investment, talent, and innovation.
  • Government and telecom firms are investing heavily to bridge the digital divide in rural communities of Central Canada, West Coast, and Northwest Territories.
  • Over 85% of Canadian firms are investing in cyberspace, while 57.1% of the federal agencies have a separate cybersecurity budget.
  • With over 616,000 job vacancies, Canadian enterprises are investing in skilling programs and talent platforms to make the workforce digital ready.
  • Canada is catalyzing its green future with tech-based federal investments, ocean tech, AI-enabled contamination reduction, and ESG reporting.

“Canadian businesses are partnering with service providers to front-run digital transformation,” said Vishal Garg, lead analyst at Avasant. “They are investing in emerging technologies and digital talent to foster innovation, elevate customer experience, and unlock new avenues for growth.”

The RadarView™ also features detailed profiles of 21 service providers, along with their solutions, offerings, and experience in assisting Canada-based enterprises in their digital transformation journeys.

This Research Byte is a brief overview of the Canada Digital Services 2024 Market Insights™ and Canada Digital Services 2024 RadarView™. (click for pricing).