Kyndryl 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 modernisation is helping companies gain a competitive edge, even as just 42 percent of businesses currently see positive return on investment from AI.
Among global respondents, India leads in average readiness across risks at 35%. In India, 88% of the business leaders are confident that their IT infrastructure is the best in class and 44% among them say their IT infrastructure is ready to manage future risks.
India is leading globally in AI adoption, with 85% of business leaders investing in AI and 51% of Indian businesses reporting net positive ROI from the same—well above the global average of 42%. However, 27% of Indian leaders cite a lack of skilled AI professionals as a key barrier to fully leveraging AI, while 10% report a skill gap in Data Science and Analytics, lower than the global average of 15%.
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 modernisation 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 modernisation. 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 for India:
● High readiness in managing talent and risk: India ranks first in business leaders’ readiness to manage future cybersecurity and resiliency risks, with 40% of leaders confident in their capabilities. Risk readiness in populous markets like India highlights that countries with larger labour pools are more capable of addressing talent gaps. With 44% of business leaders feeling ready across risks related to skills gaps and talent deficits, India leads in this area.
● Technology modernisation as a strategic priority: India’s leaders overwhelmingly prioritise technology modernisation with 96% stating it as a high priority. This is reinforced by the fact that 37% of Indian business leaders are leading technology modernisation and utilising innovative technologies to drive business outcomes.
● Challenges in employee training and regulatory compliance: India ranks 15th in employee training investments and enhancing regulatory compliance efforts. Only 25% of Indian business leaders are investing in employee training and development programs, compared to 31% globally. Similarly, just 23% are focusing on enhancing regulatory compliance efforts, falling short of the global average of 29%.
● Policy and regulatory concerns: 59% of Indian business leaders believe that policy and regulation changes are moving too fast, second highest among all countries.
“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 organisation.”
Report maps out risks and benefits
Cybersecurity tops the list of business concerns: 65% of business leaders are worried about cyber-attacks, 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 modernise are realising 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 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 preventing downtime.
Creating a roadmap to readiness
As the data indicates, organisations 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. Organisations farther along on their tech journeys also report alignment between business and tech 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 modernisation 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 ageing infrastructure, businesses are not alone in the end-of-life tech 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.