Only 1 in 4 Enterprises are Equipped to Thrive in the Next Era--New Everest Group Report
For 68% of enterprises, digital initiatives have failed to deliver the fundamental objectives of achieving operational efficiency, cost optimization and process improvement
DALLAS, June 15, 2020 /PRNewswire-PRWeb/ -- A new report from Everest Group delivers the ominous news that only one in four enterprises are equipped to thrive in the next era, despite mainstream adoption of digital technologies over the last decade. The disconnect is attributed to enterprises taking superficial approaches to technology investments without paying necessary attention to organizational readiness.
Everest Group surveyed 188 enterprises with US$1 billion or more in global revenue and found that:
- 68% of enterprises have still not been able to realize the desired impact from their digital initiatives.
- 44% of enterprises witnessed worsening of or no improvements in their operational capabilities or metrics in the last two years.
- 20% of enterprises witnessed reduction of or no improvement in employee productivity in the last two years.
- 57% of enterprises witnessed an increase in or no improvement in their operating costs in the last two years.
Everest Group warns that enterprises must adjust their strategies for digital adoption or continue to suffer from limited return on investment.
"A significant proportion of enterprises have not experienced any substantial benefits relative to their digital investments, as their heavy focus on technology disregards the softer aspects of digital transformation," said Nitish Mittal, vice president at Everest Group and one of the report authors. "For successful digital transformation, enterprises need to rethink their strategies and adopt a digital operating model that, in addition to being built on a strong foundation of technology and talent, must prioritize governance, culture, and change management."
Everest Group addresses strategies for making digital transformation a success in its new report, "Digital Services Market Report 2020: Digital Transformation: Triumph Beyond Technology Adoption." The report addresses different digital transformation operating models and the parameters that govern them. In addition, the report offers an analysis of the digital services landscape by geography, industry and technology and assesses the digital maturity of enterprises as a whole.
***Download a complimentary 9-page abstract of the report here.***
Highlights of the Digital Services Landscape:
- North America (46%) continues to dominate the global market share, closely followed by Europe (31%), where the United Kingdom is the leader accounting for 33% of the deals across Europe.
- The split of digital services deals across different industries is slightly different in comparison to the overall IT services market. The banking, financial services and insurance industry (BFSI) continues to dominate the market (20-25%) followed by electronics and hi-tech (17-20%).
- AI and cloud continue to be the most coveted and invested in technologies in the market with an adoption of 48% and 31% respectively.
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.
SOURCE Everest Group
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