Indian businesses are increasingly embracing digital technologies to stay afloat and are ready to face the challenges associated with it. A whopping 55 percent of organizations in India have a digital IT roadmap in place, says new KPMG- Dell study that was conducted with CIOs of 61 leading companies in India across various verticals to understand their views and approaches towards digital technologies.
The focus of the survey was to check organizations’ readiness towards facing digital disruption brought about by a set of disruptive technologies such as cloud, big data, IoT, mobility, and social amongst others. As per the survey, 32% of the organizations already have a formalized digital strategy in place in one or more business units. 30% of the organizations do not have a formal digital strategy but are working on one. 25 % of the organizations have an enterprise-wide digital strategy.
Akhilesh Tuteja, Partner- IT Advisory, KPMG said, “Digital is the new vehicle being driven by CIOs to ride into the future. Companies are quickly jumping on the bandwagon having acknowledged the fact that digital technologies will enable business models of future and will help transform enterprises.”
Top IT Spending Priorities
Top IT spending priorities for 2015 include Mobile Technologies (88%), IT Governance, Risk & Compliance (82%), Business Intelligence (80%), Analytics (80%) and Enterprise Applications (76%).
Annual IT Budget
For most organizations, the annual budget is more than 20 crore (27.5%) and about 23% of the organizations spend in the range of 1-10 crore on IT. Seventy percent of the organizations increased their annual IT budget by 10-20% in the last one year
Digital IT Spend, Role, and Responsibility 32% of the CIOs state that they spend 10-20% of their IT budget on digital technologies while 19% of the CIOs spend 20-30 %. As high as 19% of the CIOs spend more than 30% of their IT budget on digital technologies. Only 6% organizations have a full time digital strategy officer.
Majority of the organizations do not have anyone tagged to their digital strategy. 45% of the respondents think that digital is a good contributor to revenue/profitability/customer service, etc. 28% of the respondents think that it is the mainstream contributor
All’s not well
Despite the positive scenario, the biggest barriers for adoption of emerging technologies in organizations are data sovereignty and privacy (71%), level of Technology literacy (58.3%), regulatory compliance (54%), understanding technological shifts (50 %) and physical control (29%)
Cyber security is one the key threats which keep CIOs awake, 96% of the respondents recognize the risks posed by cyber-attacks. For 92% of the CIOs, the focus has shifted from catalyzing adoption to helping ensure the appropriate governance throughout the adoption lifecycle.
Click here to read the key takeaways from the survey