The spending on Digital Transformation in India is expected to reach $85 billion by 2026 as domestic firms gear up to increase efficiency by bringing down operation costs, improving their security capabilities against risk and delivering better customer experience via tech-enabled digital transformation, according to International Data Corporation (IDC) report.
A survey conducted by IDC on Digital Transformation in 2022 across 504 prominent decision-makers related to Information Technology (IT) indicates that 80% of the respondent in this group plans to spend more in the upcoming years than what they had in 2021 and 20% would continue to maintain the same level of spending as in 2021. The study suggests that in India, research, manufacturing, professional services, banking, government, retail, and telecommunications are the top industries spending on digital transformation.
"DX is all about embracing the right technologies; combined with people, processes, and operations that give organizations the ability to evolve and respond in the best possible way to unpredictable and dynamic market conditions," said Neha Gupta, senior research manager, IDC India.
Digital transformation might sound like a buzzword thrown around in panel discussions, conferences, articles and studies and it is hard to define the term as it looks different for different businesses. Although in simple terms, it means the integration of digital technologies into all areas of the business to change and better the way business operates and delivers value to its customers.
The COVID-19 and subsequent lockdown brought businesses to a standstill but forced them to change how they operate and deliver value. The change in the status quo turned out to be challenging initially but within a few months of the lockdown, businesses adapted and innovated to remain competitive and maintain their internal affairs as well as their customer relations by adopting technologically driven solutions.
The study emphasizes that the digital transformation journey should enable measurable outcomes. The survey conducted by IDC highlighted that Indian organizations are experiencing around 1/3rd of the annual percentage improvement in 2021 across various aspects (revenue, operational efficiency, customer satisfaction, among others) because of DX investments.
"The current headwinds such as IT supply chain disruptions, inflation, and global geopolitical issues, are likely to persist. Indian organizations must look at these factors as enablers of Digital Transformation. Taking aid from technology to save costs and remain competitive in these uncertain times will make them resilient and keep them ahead of the competition," says Rithika Ponnala, Senior Market Analyst, Digital Transformation practices, IDC India.