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Investing in Growth - Enterprise IT Investment Trends 2017


Indian CIOs keen to capitalise on disruptive and futuristic technologies for enterprise transformation, says EY-CIO Klub survey

Key Highlights

83% of the CIO respondents indicated that they wish to invest in futuristic technologies
Survey
75% highlight cybersecurity risks, especially due to lack of employee awareness and training
74% indicate that skill gaps could pose a hurdle in new technology adoption
68% are concerned that existing technologies could become obsolete
60% view disruption as a competitive threat
58% anticipate high investment costs in deploying new technologies

Mumbai, 02 May 2017: As the adoption of newer technologies gains pace, enterprises are realizing the need to identify the business functions that will derive the greatest value.TheEY-CIO Klub Enterprise IT Trends and InvestmentsSurvey 2017 titled “Deconstructing disruption: Impact of future technologies” suggests that CIOs (83%)have shown the willingness to invest in new technologiesas well as in the discovery of disruptive technologies that hold immense value. The 9th edition of the annual survey conducted by EY and CIO Klub sought the views of almost 400 CIOs. The survey covers essential considerationsto enable CIOs make better decisions regarding their IT investments.

From a role confined to maintenanceof IT infrastructure, CIOs now find themselves in the midst of improving business processes however, 75%foresee organisational agility being a challenge in the smooth implementation of new technologies. The other key business priorities that emerged in this year’s survey include ensuring a lower cost to business, innovating andmanaging the cyber security posture effectively. The survey results also highlight cybersecurity threats, with 75% of the CIOs citing the lack of employee awareness and training to pose a major risk to business. It also emphasizes the need for CIOs in both large and small organisations to show acredible value proposition to the management for faster adoption of new technologies.

While last year’s survey indicated that CIOs were leveraging SMAC (social, mobile, analytics and cloud) as a vehicle for enterprise transformation, the survey responses from this yearindicate the rise of asecond wave of digital disruption.Specifically key trends like the Internet of Things (IOT), Robotic process automation (RPA), Blockchain, Artificial Intelligence (AI) and Virtual Reality (VR) have piqued the interest of CIOs and it is increasingly incumbent on businesses to adopt these disruptive technologies to yieldbetter business outcomes.

With the ever-evolving technology landscape, keeping pace with emerging trendscontinues to remain the toppriority of the IT function across organizations. While 68% of the CIOs are concerned that existing technologies could become obsolete, 74% indicate that skill gaps could pose a hurdle in new technology adoption.

The surveyalso observed that 62% of respondents,across sectors, rated machine learning including analytics and analytics-based solutions to be of great relevance over the next two years. The majority of the respondents expressed greatexpectations in the potential of Virtual Reality and Robotics Process Automation, with 50% and43% showing confidence in these technologies respectively. However, 58% anticipated high investment costs in deploying new technologies

Mr. Nitin Bhatt, Partner and National Risk Advisory Leader, EY India said that “Disruptive business models and the digital transformation of businesses across the globe are forcing organizations to reimagine the role of their IT functions to stay competitive and in some cases, to stay relevant. Today, CIOs are constantly on the look-out for futuristic technologies to challenge the status-quo, cut costs, boost revenues, generate process efficiencies and facilitate the development of new products and services. They also understand what “digital” means for every area of the business, whether operational or customer-facing, and they make convincing arguments for why their organizations should embrace these opportunities. The ongoing disruption of businesses, enabled by unprecedented technological innovation, provides a great opportunity for CIOs to be the strategic reference point in their respective organizations’ transformation journey.”

According to Mr. ShirishGariba, President CIO KLUB, “The need of the hour is for CIOs to develop solid business cases to get the nod of the board for exploring various new disruptive technologies. Indeed, CIOs seem to be keen on managing their risks by outsourcing the implementation of these technologies or deploying plug-and-play solutions. It is in this context that “Everything-as-a-Service,”orXaaS, has the potential to become an efficient tool for IT transformation.”

EY and the CIO KLUB’s Enterprise IT Trends and InvestmentSurvey annually gauges investment patterns, IT priorities andupcoming investment plans of organizations. This year’s survey was open for a period of three weeks inthe month of March 2017 and was designed to identify the most significanttrends related to ITinvestments, initiatives, priorities and technologies domains across enterprises.

About the survey
EY and CIOKLUB’s Enterprise IT Trends and Investment Survey gauges current investment patterns, IT priorities and upcoming investment plans of organizations. This survey was conducted through a secure online tool with a specific URL that was mailed to designated members of the CIOKLUB, along with instructions for completing the survey. Key themes from the discussions have been considered for the report. EY downloaded the results of the survey to conduct an analysis and used cross tabs to identify the patterns of various IT domains across specific industries, and the size and type of industry. Responses of 314 out of 399 respondents, who completed the survey, were considered as complete and used for the analysis. Partial responses have been ignored for the purpose of this analysis.

About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

Enterprise IT Investment Trends 2017

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