Inaugural global study, with exclusive data
from AI-powered Kyndryl Bridge, shows how executives rank risks,
prioritize investments, and balance technology and talent
- Security and regulations top lists of executives' concerns
- AI return on investment limited by skills, compliance,
compatibility
- End-of-life technology a top challenge for CEOs
- Talent drives overall readiness
NEW
YORK, Oct. 16, 2024 /PRNewswire/ -- Kyndryl
today released the 2024 Kyndryl Readiness Report, which explores
the paradox of why 90% of executives believe their IT
infrastructure is best-in-class but only 39% of them think it's
ready to manage future risks. The report also shows how IT
modernization is helping companies gain a competitive edge, even as
just 42 percent of businesses currently see positive return on
investment from AI.
In the digital economy, business leaders say they're relying on
their IT to mitigate risk, build talent and take advantage of new
tools. Yet while 94% of leaders say technology modernization is a
high priority for their companies, data from Kyndryl shows that 44%
of mission-critical IT infrastructure is approaching or at
end-of-life, increasing vulnerability and raising barriers to
modernization. Business leaders say they need help with decision
making and talent development.
The Kyndryl Readiness Report combines feedback from 3,200 senior
decision-makers with insights from Kyndryl Bridge, the Company's
AI-powered digital business platform, to illustrate global business
challenges and opportunities across markets and industries.
Additional highlights:
- AI ROI elusive: While 76% of businesses are
investing in traditional AI and machine learning, only 42% see a
positive return on investment. The biggest barriers to AI adoption
remain data privacy concerns (31%), uncertain ROI (30%) and
compliance challenges (26%).
- End-of-life technology challenge: Nearly all modern
businesses face the challenge of keeping their systems up to date.
64% of CEOs are worried about outdated IT, and Kyndryl Bridge shows
that 44% of mission-critical IT infrastructure is approaching or at
end-of-life.
- Technology is outpacing training: Over 40% of leaders
are experiencing technology skills gaps that hinder modernization
progress.
- Security still top concern: 65% of executives are
worried about cyber-attacks, and only 30% feel ready to manage
those risks.
- Leaders report business-tech alignment: Companies
farther along in digital transformation report greater
collaboration between business and technology leaders, and greater
ROI on technology projects.
"The work we do at Kyndryl to run and transform complex IT
infrastructures for thousands of enterprise customers, has given us
a deep perspective on how companies can identify opportunities to
overcome today's business challenges," said Martin Schroeter, Chairman and CEO of Kyndryl.
"Readiness is an ongoing challenge and it's about empowering
people, aligning tools with culture and embracing the complex
journey of digital transformation across the entire
organization."
Report maps out risks and benefits
Cybersecurity tops the list of business concerns: 65% of
business leaders are worried about cyberattacks, and only 30% feel
ready to manage them. Similarly, 59% express concern over climate
and environmental disruptions, yet just 25% believe their systems
can effectively respond.
An accelerating regulatory landscape is also top of mind for
executives, as major measures come online. While 48% of executives
are concerned that the pace of regulation is moving too fast, 66%
see regulation as having a positive effect overall.
Despite these challenges, businesses that do modernize are
realizing clear benefits from those projects. Looking back on the
past year, leaders said they have experienced improved efficiency
(85%), greater innovation (71%) and an improved employee or
customer experience (60%). However, there is still room to improve
as executives see less of an impact in data security and compliance
with regulations (34%) and from sustainability-based outcomes such
as decreased energy use or emissions (27%).
Even companies that have adopted more advanced IT tools, like
automation programs that monitor and solve for issues across an
entire IT estate, have room for additional improvement. Kyndryl
Bridge shows an average of 8% of IT issues are remediated by
automation without human intervention. Kyndryl sees the potential
for up to 30% of IT issues being resolved through automation -
potentially saving companies billions of dollars per year in
maintenance costs and prevented downtime.
Creating a roadmap to readiness
As the data indicates,
organizations face tough decisions in their readiness journeys. By
plotting out blind spots and difficult trade-offs, the Report
offers a roadmap to readiness in a rapidly changing business
landscape.
- Being 'people-ready' is just as important as being
'tech-ready.' IT is everyone's business. Organizations farther
along on their technology journeys also report alignment between
business and technology leaders. With IT playing a more prominent
role in shaping workplace culture and processes, CIOs and CTOs who
collaborate across the C-suite will be more prepared to bring
employees along with upgrades in technology. Leaders who nurture a
skilled workforce are more likely to feel ready for future risks,
so investing in talent development, particularly in AI and
cybersecurity, is crucial.
- Weigh the new vs. the familiar: To build the case for
smart investments, leaders need to understand how new tools will
integrate not only with technology but the company culture,
processes and goals. Balancing immediate needs with long-term
investments will help leaders navigate complex modernization
challenges. And new capabilities, like AI, rely on a solid data
foundation; investing in the foundation first may achieve higher
ROI in the long term.
- Reframe the conversation about tech debt: The data shows
that in an evolving market, with nearly everyone confronting aging
infrastructure, businesses are not alone in the end-of-life
technology challenges. Reducing technical debt eliminates
operational inefficiencies and unlocks potential for faster
growth—an investment in future agility and innovation. This
includes fully embracing new capabilities like automation to
increase efficiency and reduce downtime.
To read the full report, read Kyndryl's 2024 Readiness
Report.
Methodology
The 2024 Kyndryl Readiness Report is based
on a comprehensive survey conducted by Edelman DXI, gathering
insights from 3,200 senior decision-makers across 25 industries,
including healthcare, manufacturing, energy, and finance. The
survey, conducted between July 1 and August
12, 2024, captured perspectives from C-suite executives
(CEOs, CFOs, CIOs, and CTOs) and senior directors from companies
across 18 global markets, including the
United States, Brazil,
China, Germany, and the UK.
About Kyndryl
Kyndryl (NYSE: KD) is the world's largest IT infrastructure
services provider, serving thousands of enterprise customers in
more than 60 countries. The company designs, builds, manages and
modernizes the complex, mission-critical information systems that
the world depends on every day. For more
information, please visit www.kyndryl.com.
Kyndryl Press Contact
press@kyndryl.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/kyndryl-readiness-report-90-confident-in-it-but-39-say-its-future-ready-302277730.html
SOURCE Kyndryl