Canada Digital Services: Accelerating Transformation, Strengthening Sustainability, and Driving Innovation

Canada’s digital services landscape is evolving rapidly as enterprises embrace AI, cybersecurity transformation, and cloud-first strategies to boost productivity and resilience. With increasing focus on upskilling to bridge the digital talent gap and partnerships with startups to deliver personalized experiences, Canadian firms are positioning themselves for sustained innovation. Additionally, strong government support for clean technologies and ESG-driven growth underscores Canada’s commitment to building a secure, sustainable, and digitally empowered economy.

Both demand- and supply-side trends are covered in Avasant’s Canada Digital Services 2025–2026 Market Insights™ and Avasant’s Canada Digital Services 2025–2026 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 45 service providers across three dimensions: practice maturity, investments and innovation, and ecosystem development. Of the 45 providers, we identified 21 that have brought the most value to the market over the past 12 months.

The reports recognize service providers across four categories:

• • Leaders: Accenture, CGI, IBM, Infosys, and Wipro
  • Innovators: Atos, Capgemini, Cognizant, HCLTech, TCS, and Virtusa
  • Disruptors: Deloitte, DXC Technology, Fujitsu, Tech Mahindra, and TELUS Digital
  • Challengers: Adastra, CDW, LTIMindtree, OnX, and UST

Figure 1 below from the full report illustrates these categories:

“Canadian firms are speeding up digital transformation using AI, cloud, and analytics to enhance customer experience and efficiency,” said Robert Joslin, managing partner at Avasant. “They are modernizing through global competency centers, backed by government initiatives, while tackling talent gaps, regulations, and currency fluctuations.”

The reports provide several findings, including the following:

• • Only about 12% of Canadian firms have integrated AI into operations, highlighting a significant need for broader adoption to enhance efficiency and competitiveness.
  • A rapid increase in cybersecurity threats has driven the adoption of AI-powered zero-trust architecture and expanded government investment across Canada.
  • As outdated systems drain budgets, Canadian enterprises turn to cloud-first innovation to restore efficiency and secure digital progress.
  • Low digital skills and talent shortage continue to critically limit Canadian enterprises’ growth and demand for services.
  • With an increase in demand for personalized experiences from customers, Canadian enterprises are partnering with startups specializing in AI and digital solutions.
  • Canadian enterprises are increasingly adopting clean technologies to meet sustainability targets and global ESG standards.

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 Avasant’s Canada Digital Services 2025–2026 Market Insights™ and Canada Digital Services 2025–2026 RadarView™. (Click for pricing.)