Endava: AI set to drive 44% growth in digital services revenue by 2029

The Importance of Modernizing Digital Infrastructure

This shift is driving businesses worldwide to prioritize operational efficiency, with a growing recognition of the need to modernize digital infrastructure to achieve scalability and cost-effectiveness. The report highlights that globally, 48% of organizations already consider themselves digital businesses, but the report emphasizes that the future belongs to those willing to integrate AI into their operations fully.

Key Role of AI in Driving Innovation

As businesses shift from merely building digital infrastructure to scaling it, AI and machine learning (ML) technologies will be key drivers of innovation. According to the study, 49% of companies attribute overspending on digital infrastructure to the costs of maintaining legacy systems, underscoring the need for organizations to reevaluate and streamline their IT operations.

The Ongoing Journey of Digital Transformation

In the next phase of digital transformation, AI is predicted to become a critical enabler, allowing businesses to innovate at scale while reducing the time and costs associated with automation and intelligence use cases. The report points out that digital transformation must be seen as an ongoing journey without a definitive endpoint. AI is set to dominate the next chapter of this journey, and businesses that fail to embrace this technology risk being left behind.

Challenges and Solutions

Companies failing to adapt to the AI-driven market may face competitive disadvantages such as delayed time-to-market, less advanced product portfolios, and a weaker position in their respective sectors, according to the report. IDC research shows that 60% of CEOs have made AI deployment their top priority, underscoring the growing importance of artificial intelligence in business strategy.

Another pressing issue highlighted in the report is the growing reliance on external IT services to fill skill gaps within organizations. Globally, a shortage of talent is identified as a major risk factor for the next 12 months, with 44% of businesses citing limited internal capacity for large-scale digital projects.

The Era of Digital Scale

In the post-pandemic era of digital acceleration, organizations are now moving towards a phase of digital scale. This involves scaling technology, business operations, and data management to meet the demands of a rapidly evolving digital economy. Companies are shifting to data-driven business models to deliver personalized customer experiences and drive continuous innovation.

The Future of AI Integration

The next era of digital transformation is characterized by the concept of “AI Everywhere”, where AI will be deeply embedded into every aspect of business operations. The creation of intelligence architectures, data-centric platforms, and cost-effective digital infrastructure for AI workloads are becoming critical priorities for organizations. Companies must also focus on attracting and reskilling talent while ensuring regulatory compliance to build trust with stakeholders.

Driving Digital Innovation

As businesses continue to modernize, the report underscores the importance of aligning digital strategies with market dynamics. In the AI-driven future, organizations that leverage AI, data, and modern infrastructure will be well-positioned to lead the next wave of digital innovation.

Technology and People-Centric Approach

Technology is our how. And people are our why. For over two decades, we have been harnessing technology to drive meaningful change and create a positive impact on people – whether they are our employees, our customers, and their customers or our wider communities. Working side by side with leading brands, we build strategies, products, and solutions tailored to unique needs, regardless of industry, region, or scale. By combining world-class engineering, industry expertise, and a people-centric mindset, we consult and partner with our customers to create technological solutions that drive innovation and transform businesses.

From ideation to production, we support businesses with bespoke solutions across various industries, including payments, insurance, finance and banking, technology, media, telecommunications, retail and consumer goods, supply chain, healthcare and life sciences, automotive and travel. With agile, multidisciplinary teams, we guide our customers through every step of their digital transformation journey, creating dynamic platforms and intelligent digital experiences that enable growth.

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