The purview of digital transformation has expanded beyond digital technology implementations. IT budgets are trending up despite macroeconomic pressures driven by digital spending. Digital talent has become the main cog in the digital transformation wheel. The past 12–18 months made it clear that a robust digital talent strategy is key to scaling digital initiatives and maintaining resilience in unpredictable market conditions. Enterprises must balance critical decisions around full-time vs. gig workers, outsourcing vs. in-house, cloud vs. on-premises, and mainstream vs. emerging tech.
Digital solutions providers have the opportunity to become partners of choice by bringing the right balance between scaling existing digital projects for cross-functional impact and innovating rapidly with emerging technologies. As enterprise focus broadens beyond revenue growth and employee productivity to more sustainable, digital-led business practices and employee wellness, there will be a greater need for trusted and innovation-focused partnerships.
In this context, NASSCOM and Avasant release the Digital Enterprise Maturity 3.0: Boosting Business Resilience through Technology report. This third edition of Digital Enterprise Maturity reports analysis based on 550 global enterprises across 11 major sectors and four chief geographic regions. Compared with the pre-pandemic trends reported in the first Digital Enterprise Maturity report in early 2020, a faster “shift-up” along the maturity curve is now being seen, with a robust outlook for fiscal year (FY) 2023.
The goal of the study is to build a comprehensive yet adaptable and scalable framework for assessing an enterprise’s overall digital maturity and benchmarking its performance within the sector, the region, and globally. There are three dimensions of digital maturity (Digital Strategy and Investments, Technology Adoption, and Digital Talent) and 14 primary parameters that form the multivariate assessment model. The five maturity phases—Beginners, Followers, Strivers, Accelerators, and Transformers—are determined on a scale of 1 to 5. Transformers are the most digitally mature organizations.
Key findings are as follows:
- Sixty-seven percent of enterprises spend more than 4% of revenue on IT, with around 33% earmarking more than 30% of their IT budget on digital spending.
- Ninety-seven percent of businesses increased spending on foundational digital technologies such as cybersecurity, cloud, and big data analytics, in that order, in FY 2022. Cybersecurity remains a top priority.
- Sixty to sixty-five percent of companies indicate employee attrition and employee health and safety as top business risks, which they aim to mitigate through the use of technology.
- Telecom, media and entertainment is the most digitally mature sector, with around 37% of its digital spend allocated to R&D, innovation, and inorganic growth, the highest across all sectors in FY 2022.
- On average, enterprises plan to allocate 4%–8% of revenue to technology adoption in FY 2022.