TCS Global Survey Finds 90% of Large Enterprises are Maintaining or Increasing Digital Transformation Budgets Amid COVID-19
·
Tata Consultancy Services’ Survey
Benchmarks Six Essential Digital Capabilities Needed to Thrive in Rapidly
Evolving Global Markets
·
Less Than One-third of Companies are
Digitally Prepared, But Those with the Most Enhanced Digital Capabilities
Expect to Bounce Back Faster From Pandemic-related Revenue Declines
MUMBAI, September
29, 2020: Tata Consultancy Services (TCS), (BSE: 532540, NSE:
TCS), a leading global IT services, consulting and business solutions
organization, announced the findings of its global survey titled, “Digital
Readiness and COVID-19: Assessing the Impact,” revealing that 90% of organizations
are maintaining or increasing their digital transformation budgets amid the
pandemic.
The global
survey engaged almost 300 senior business leaders from large enterprises – 97%
with revenue above $1 billion and 44% above $10 billion – spanning 11
industries across North America, Europe and
Asia. Six
digital capabilities were identified as critical factors in companies
withstanding the pandemic:
·
End-to-end
digital customer experience (CX)
·
AI-based
analytics to continually improve the CX
·
Core enterprise
systems in the cloud
·
Highly
automated core business processes
·
Digital
sensors tracking products
·
Key
partnerships in digital ecosystems
The analysis compared organizations that had
more advanced digital capabilities in place prior to COVID, referred to as “leaders,”
with those that had fewer, if any, in place, known as “followers.” The study
showed that fewer leaders (64%) have seen their revenue decline, compared to followers
(73%). Moreover, leaders had better business visibility and a more confident
outlook, with 74% of them expecting revenues to bounce back within two years,
compared to 54% of followers.
“Before
the pandemic, companies’ digital capabilities were rapidly becoming central to
their success and business transformation initiatives. However, our study revealed
how several enterprises were not as far along in developing a digital backbone
as they hoped,” said Rajashree R, Chief Marketing Officer, TCS.
“Companies that had embraced digital transformation more whole-heartedly performed
better during the pandemic and expect a faster rebound, whereas others are now
focused on making necessary investments and racing to catch up.”
Digital
Readiness and COVID-19: Assessing the Impact – Key Findings
·
While 68% of companies have seen revenue declines amid COVID-19, 90%
of organizations have either maintained or increased their digital
transformation budget.
·
Among shifts in technology spends due to the pandemic,
companies reported maximum increases on: collaborative technologies (65%),
cybersecurity (56%), cloud-native technologies (51%) and advanced
analytics (39%).
·
Prior to the
pandemic, the average organization surveyed had only 9% of its workforce
working mostly from home. That percentage has increased seven-fold and
is expected to remain elevated through 2025, when the average company projects 40%
of its employees will work largely from home.
·
Business initiatives around an end-to-end CX have seen
most traction, already deployed at 25% of companies and under
development at 44%. Similarly, the use of analytics and AI to improve CX is
deployed at 24% and under development at 39% of companies.
·
Higher levels
of automation in core business processes is another priority area, already
deployed at 23% of companies and under development at 44% of companies.
The
full survey findings can be found here.
About
Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services is an IT services,
consulting and business solutions organization that has been partnering with
many of the world’s largest businesses in their transformation journeys for
over 50 years. TCS offers a consulting-led, cognitive powered, integrated
portfolio of business, technology and engineering services and solutions. This
is delivered through its unique Location Independent AgileTM delivery
model, recognized as a benchmark of excellence in software development.
A part of the Tata group, India's largest
multinational business group, TCS has over 443,000 of the world’s best-trained
consultants in 46 countries. The company generated consolidated revenues of US
$22 billion in the fiscal year ended March 31, 2020, and is listed on the BSE
(formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in
India. TCS' proactive stance on climate change and award-winning work with
communities across the world have earned it a place in leading sustainability
indices such as the Dow Jones Sustainability Index (DJSI), MSCI Global
Sustainability Index and the FTSE4Good Emerging Index. For more information,
visit us at www.tcs.com.www.tcs.com.
For TCS global news, follow @TCS_News.
TCS
media contacts:
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Email: charlene.lee@tcs.com | Phone: +65 9138 4370 |
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Canada |
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Email: mattias.afgeijerstam@tcs.com |Phone: +46 723 989 188 |
India |
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Japan |
Email: douglas.foote@tcs.com |Phone: +81 80-2115-0989 |
Latin America |
Email: martin.karich@tcs.com | Phone: +569 6170 9013 |
Nordics |
Email: roland.bagen@tcs.com | Phone:
+46 70 317 80 24 |
UK |
Email: peter.devery@tcs.com |Phone: +44 20 3155 2421 |
USA / Canada |
Email: william.thomas@tcs.com |Phone: : +1 203-984-3978 |
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