Leaders bemoan skills gap, but optimistic on tech debt
Two-thirds of organisations expect to embrace new technologies like NFTs, quantum computing and metaverse operations in the next two years.
Despite geopolitical challenges, global tech executives are enthused about new tools and technologies and keen to expand digital transformation - and to forget about technical debt.
According to KPMG's 2022 Global Tech Report, which polled 2,200 IT leaders worldwide, two-thirds of organisations are expected to adopt new technologies like metaverse, NFTs and quantum computing in the next two years.
Nearly all (99%) of the respondents said digital transformation has helped their organisation increase performance and profitability over the last two years.
Eighty-eight per cent said they are 'advanced' in their adoption of cloud-based solutions.
The quality of customer experience is one of the primary reasons for companies to unlock digital transformation budget. This relates to customer-centric experiences, which call for the best possible workflow, service and product design to satisfy consumers' demands.
"Customer experience is substantially motivating enterprise investments in IT and is becoming synonymous with digital transformation," said Barry Brunsman, global leader of the CIO Center of Excellence at KPMG International.
"Tech strategies are anchored to creating loyalty-winning experiences, to safeguard income and encourage high levels of repeat revenue from customers."
Most IT executives are optimistic about digital transformation. For instance, 66% say their firms are either extremely or very effective at leveraging tech to promote their business plans.
But despite this positive momentum and enthusiasm, there are challenges to overcome, including critical skills shortages and cybersecurity pressures.
The talent shortage is the primary issue confronting organisations worldwide, with 44% of respondents citing it as a major challenge.
The next challenges were the high cost of adding new systems and people (32%), lack of skills to adopt or fully take advantage of new systems (29%), sub-optimal data management (28%) and a risk-averse corporate culture (24%).
These issues play into cybersecurity challenges, too. Tech leaders say lack of skills is the biggest obstacle keeping them from achieving their cybersecurity objectives. Over half (58%) admitted they are running behind schedule with their position on cyber security.
KPMG also asked about technical debt, which often occurs when IT is required to maintain ageing systems even as the organisation adopts new technology. It can be a frustrating issue that slows innovation and development.
However, nearly three-quarters of participants - 73% - said that tech debt had little to no effect on their IT goals.
Respondents in India were more likely than the worldwide average to feel their IT objectives are constrained by tech debt (11%).
More than half of respondents (53%) said they often address company IT upgrades in line with a predetermined schedule.