Digital transformation is the process of using digital technologies to create new—or modify existing—business processes, culture, and customer experiences to meet changing business and market requirements.
What is Digital Transformation?
The process of leveraging digital technologies to develop new business procedures, culture, and customer experiences, or to adapt current ones, in response to shifting market and business demands, is known as digital transformation.
With their ability to provide strategic direction, technological know-how, infrastructure modernization, application development, data management, cybersecurity, change management, and continuous support, IT services providers may actively contribute to and expedite digital transformation.
How is the trend of Digital Transformation in 2024 (Statistics)?
The Market for Digital Transformation received a boost with the COVID-19 pandemic as organizations scrambled to improve their digital presence when customers started reducing face-to-face interaction. Despite predictions that the world would return to normal within a year or two, the effects of the pandemic still continue to be felt and businesses are realizing that the shift of their client base to the online environment may not be as temporary as they thought, especially in light of the new technologies that are arising. As such more businesses are pushing for digital transformations while under pressure to not lose their client base.
According to the 2023 Digital Transformation Market Report done by Research and Markets, the Global Digital Transformation Market expected to grow from “USD 695.5 billion in 2023 to USD 3,144.9 billion by 2030”, with an accelerated Compound Annual Growth Rate (CAGR) of 24.1% in comparison to the 15% predicted in 2020.
The report pointed out that the change is also driven by new technologies such as artificial intelligence, cloud computing, big data, and IoT forcing enterprises to have a “Change or Die Out” view in order to stay competitive, drive innovation, and deliver unparalleled customer experiences. Further the research brought to light that AI was the technology with the highest growth while IT services was the segment with largest CAGR. Meanwhile, the fact that the Asia Pacific region was forecast to have the highest growth rate bodes positively for offshore digital transformations in countries such as Sri Lanka.
According to IDC, by the end of this year digitally transformed organizations will contribute to more than half of the global gross domestic product (GDP), accounting for $53.3 trillion.
How can IT Services Contribute to Digital Transformation?
There are a number of specific ways that IT services providers can assist firms with digital transformation:
Create a digital transformation strategy: Companies can work with IT services providers to create a strategy that is in line with their overarching business goals and objectives. Additionally, they may assist companies in determining which technology and solutions will best support their digital transformation efforts.
Modernize IT infrastructure: To make their IT infrastructure more secure, scalable, and flexible, companies can work with IT services providers to update their infrastructure. This could entail introducing new networking and security solutions, updating to new hardware and software, or moving to the cloud.
Adopt new technologies: Artificial intelligence, machine learning, big data analytics, and the Internet of Things (IoT) are just a few examples of the new technologies that IT services providers can assist firms with implementing. Businesses may increase their client satisfaction, product innovation, and operational efficiency with the use of these technologies.
Manage and Safeguard Information: IT services companies can assist organizations in managing and safeguarding their data. Putting data lakes, warehouses, or big data platforms into practice may be necessary for this. They can also support companies in putting data security and governance policies into practice.
Upskill employees: IT services providers can assist companies in providing their staff with the new technology and skills required for the digital transformation. This can involve educating employees on big data analytics, cybersecurity, cloud computing, and other digital technologies.
How to Choose the Right IT Services Provider
In selecting an IT services provider to assist with digital transformation, here are some questions you should ask yourself when making decisions:
Experience and knowledge: Does the IT services supplier have provable knowledge and experience assisting companies in their digital transformation with testimonials from prior customers?
Services offered: To enable digital transformation, the IT services provider should provide a broad range of services. Can they provide services such as application development, data management, cybersecurity, infrastructure modernization, along with giving strategic advice with sufficient technological know-how and continuous support?
Scalability: As your firm expands, can the IT services provider still grow with it or scale to meet your needs?
Cost: Does the IT services supplier set an affordable and fair price for their services?
Conclusion
In summary, providers of IT services can be quite helpful to companies undergoing digital transformation. Businesses can achieve their digital transformation goals more quickly and effectively with the assistance of IT services providers who offer crucial services such as technology knowledge and strategic counsel.
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