- Since the pandemic’s onset in 2020, organizations have seen a shift in technology spending toward digital initiatives. While overall spending has risen, the focus is now on strategic allocation, particularly AI. Generative AI’s emergence has prompted businesses to develop comprehensive AI strategies to drive innovation, enhance productivity, fast-track time to market, and improve customer experience. This shift prioritizes outcomes like operational efficiency and competitive differentiation over mere cost containment. nasscom and Avasant present the “Digital Enterprise 5.0: Digital Readiness in the Era of AI” report in this context. The study is an in-depth survey of more than 500 global enterprises across all major regions and 11 industries to assess their performance in adopting digital technologies toward overall enterprise digital maturity. The report offers insights into enterprise approaches for business strategy, digital investments, generative AI strategy, and digital talent development. It also provides a perspective on potential opportunities for service providers concerning enterprises’ digital needs, outsourcing, and generative AI strategies.
The report provides a number of findings and recommendations, including the following:
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- Seventy-one percent of the global enterprises spent 20% or more of their technology budget on digital in 2023, up from 57% in 2022.
- Ninety-five percent of the enterprises awarded a similar or higher number of digital services contracts in CY 2023, compared with CY 2022.
- India remains the preferred outsourcing destination for businesses aiming to build and expand their digital services portfolio.
- Seventy percent of enterprises allocated some budget to generative AI, either from the total tech, digital, or a dedicated generative AI corpus.
- Sixty-eight percent of global enterprises expect an increase in client demand in CY 2024, while 80% indicate that revenues will either remain the same or grow despite pricing pressure.
- Cybersecurity, AI/ML and generative AI, networking tech, and automation will draw maximum investments over the next 12 to 18 months, driven by the need to do more with data.
- Generative AI will draw more investments in CY 2024, with 73% of the companies with generative AI budgets in 2023 considering it critical to spend more, primarily on talent development.
- The top five generative AI roles in demand in CY 2024, in addition to the chief AI office role, will be in model fine-tuning and applications including generative AI developers, prompt engineers, AI model curators, and AI content creators.
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Digital Enterprise 5.0: Digital Readiness in the Era of AI
April, 2024
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