Investing in IT and digital transformation in 2024
UK consultancies believe that investing in IT infrastructure and digital transformation offer the greatest opportunities for growth in the coming year. However, eight-in-ten consulting firms feel they have not invested enough in the skills of their staff to realize the true potential of technological changes.
Biggest growth opportunities for consultancies:
Deltek polled leaders of 64 UK and Ireland firms with 25 or more employees, about opportunities and challenges, technology trends, and business development. And first and foremost, the researchers found that despite the sensitive state of the market, consultancies across the British Isles are betting big on emerging technologies.
When asked what they felt the biggest opportunities available to them were, the leading response was ‘investing more in IT infrastructure’ – at 20% of respondents. A further 20% said breaking into new markets or segments was a key opportunity – something which the addition of new IT systems could aid – while in third place, 14% said they saw the biggest opportunities in technology innovation.
In this context, it might not be particularly surprising that 74% of consulting firms told Deltek they would increase investment in emerging technologies for the year ahead. Or, that 31% stated that this would be significantly more than the previous year. Amid a slowing consulting market, firms are taking a proactive approach to preserving their profitability.
Obstacles to implementation of digital transformation programmes:
The importance of investing in both technology and the skills of the workforce:
1) Opportunities in IT Infrastructure and Digital Transformation:
The UK consultancies recognize that investing in IT infrastructure and digital transformation presents significant growth opportunities.
Digital transformation, including technologies like AI, is seen as a key driver for economic growth, with the potential for a substantial productivity boost.
2) Challenges in Skills Investment:
Despite recognizing the potential of technological changes, eight-in-ten consulting firms feel they have not invested enough in the skills of their staff.
This gap in skills investment poses a challenge and may hinder the realization of the full potential of technological advancements.
3) Importance of Employee Skills in Digital Transformation:
Research has consistently shown that successful digital transformation requires not only the adoption of new technologies but also investment in the skills and capabilities of the workforce.
Without proper training and upskilling, employees may struggle to adapt to new technologies, leading to the failure of digital change programs.
4) Common Pitfalls in Digital Transformation:
The mention of two-thirds of digital change programs not meeting their targets underscores the common challenges in implementing digital transformations.
Failure to invest in employee skills is cited as a major reason for the shortcomings of these programs.
5) The Role of AI in Economic Growth:
The reference to AI contributing to a potential $44 trillion productivity boost highlights the transformative impact of advanced technologies on the global economy.
The gold-rush to invest in AI reflects the widespread recognition of its potential benefits.
6) Need for a Holistic Approach:
To maximize the benefits of digital transformation, organizations need to take a holistic approach that combines technology adoption with strategic investments in employee skills.
Employee training and development should be integral to any digital transformation strategy to ensure successful implementation and long-term sustainability.
7) Continuous Learning and Adaptability:
Given the rapid pace of technological advancements, fostering a culture of continuous learning and adaptability is crucial for both employees and organizations.
Investing in ongoing training programs can help employees stay abreast of the latest technologies and industry trends.
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