CGI's Research Reveals Digital Transformation Trends and Challenges for Businesses in 2023
- CGI's research reveals two-thirds of executives see digitization reshaping business models and accelerating value chain evolution.
- Only 28% of executives believe their operating models are agile enough for ongoing digital transformation.
- Over half of executives plan to invest substantially in new IT projects, emphasizing AI and cloud solutions for modernization.
Navigating Digital Transformation: Insights from CGI's Annual Global Research
CGI, a prominent player in IT and business consulting services, releases compelling findings from its latest global research, which engages over 1,800 senior executives in the business and technology sectors. The research highlights a critical shift in how companies perceive and implement digital transformation, with two-thirds of executives acknowledging that digitization is fundamentally reshaping their business models. This recognition has grown significantly, with 38% of executives noting an accelerated evolution of value chains—a notable increase of 10 percentage points compared to the previous year. The findings underscore a pivotal moment in the industry, as organizations grapple with the dual pressures of embracing digital change while navigating macroeconomic uncertainties.
Despite the optimistic outlook on digitization, the research reveals that many organizations encounter substantial barriers to realizing a return on investment (ROI) from their digital initiatives. A mere 28% of executives express confidence that their operating models are agile enough to support the ongoing transformation. Legacy systems emerge as a significant hurdle, with nearly 70% of respondents highlighting challenges in attracting and retaining skilled IT talent. This talent shortage complicates efforts to modernize operations, leaving companies at risk of falling behind in a rapidly evolving digital landscape. The combination of these challenges prompts executives to adopt a cautious approach, emphasizing the need for strategic investment in new IT initiatives despite cost-cutting pressures.
Looking ahead, the research indicates a strong commitment among executives to sustain or increase capital expenditures in the coming year. More than half of those surveyed plan to allocate over $200 million toward new IT projects within the next three years, signaling a clear intent to prioritize operational efficiency and modernization. Notably, there is a growing interest in managed services, application modernization, and cloud solutions, with AI recognized as a vital component of this transformation. Approximately 35% of organizations have started implementing traditional AI, while 26% have adopted generative AI, indicating a robust year-over-year growth trend. CGI’s President and CEO, François Boulanger, emphasizes the company’s commitment to serving as a trusted partner in guiding organizations through these complexities, leveraging both local insights and global capabilities to drive tangible business outcomes.
In addition to the digital transformation focus, CGI’s research illustrates a broader shift toward innovative strategies, as companies increasingly explore various avenues for modernization. The emphasis on AI and managed services reflects an industry-wide recognition of the necessity for agile, technology-driven responses to changing market dynamics. As organizations continue to adapt, CGI positions itself as a key facilitator, helping clients navigate the intricate landscape of digital evolution.