It appears digital transformation budgets are insulated from to the pervasive cuts in spending brought about by the coronavirus pandemic, according to a new report from Tata Consultancy Services (TCS).
Polling some 300 senior business leaders at large enterprises, the firm found that 90 percent are either maintaining or increasing their digital transformation budgets.
That's despite the fact that more than three quarters of companies (68 percent) have seen their revenue decline amid Covid-19.
In most cases, businesses are spending on collaborative technologies (65 percent), cybersecurity (56 percent), cloud-native technologies (51 percent) and advanced analytics (39 percent).
The report also identified six digital capabilities critical to success during the pandemic: end-to-end digital customer experience (CX), AI-based analytics to continually improve the CX, core enterprise systems in the cloud, highly automated core business processes, digital sensors tracking products and key partnerships in digital ecosystems.
Fewer businesses that were identified as leaders in these fields prior to the pandemic have seen their revenue decline, and their leaders had better business visibility and a more confident outlook.
“Before the pandemic, companies’ digital capabilities were rapidly becoming central to their success and business transformation initiatives. However, our study revealed how several enterprises were not as far along in developing a digital backbone as they hoped,” said Rajashree R, Chief Marketing Officer at TCS.
“Companies that had embraced digital transformation more whole-heartedly performed better during the pandemic and expect a faster rebound, whereas others are now focused on making necessary investments and racing to catch up.”