IT Paradox: 90% Confident, Yet Only 39% Future-Ready

Kyndryl has unveiled its 2024 Readiness Report, revealing a paradox faced by global business leaders: while 90% of executives believe their IT infrastructure is top-tier, only 39% think it’s equipped to handle the evolving risks of the future. The report, based on insights from Kyndryl Bridge, an AI-powered digital business platform, sheds light on the complexities of IT modernization, AI integration, and talent management across industries.

India Leads in AI Adoption, But Skills Gap Persists

India stands out globally in AI adoption, with 85% of business leaders actively investing in artificial intelligence. The country also leads in AI return on investment, with 51% of Indian businesses reporting positive outcomes, far surpassing the global average of 42%. However, despite these advancements, a 27% skills gap in AI talent remains a significant hurdle. This shortage of skilled professionals limits the ability of Indian companies to fully leverage the technology’s potential, even as they race ahead in AI innovation.

Further, while a 10% skills gap in data science and analytics is reported in India—lower than the global average of 15%—business leaders see this as a critical area needing attention to maximize the benefits of AI.

Global IT Readiness Concerns

Globally, business leaders are grappling with the challenge of keeping up with IT modernization. The Kyndryl Readiness Report shows that while 94% of respondents acknowledge that technology modernization is a high priority, 44% of mission-critical IT infrastructure is approaching or at its end-of-life. This aging technology increases vulnerabilities, posing risks to companies looking to build future-ready systems.

Among Indian respondents, 88% believe their IT infrastructure is best-in-class, but only 44% feel it’s ready to manage future risks, aligning with the global trend of under-preparedness for future challenges.

Talent and Risk Management

India ranks first globally in business leaders' readiness to manage future cybersecurity and resiliency risks, with 40% of leaders expressing confidence in their capabilities. This strong showing is attributed to India’s large labor pool, which helps address talent gaps more effectively than other regions. Additionally, 44% of Indian business leaders feel prepared to tackle talent deficits, making India a leader in this area as well.

Challenges in Employee Training and Regulatory Compliance

Despite India’s strong performance in AI adoption and IT readiness, there are notable gaps in employee training and regulatory compliance. India ranks 15th globally in employee training investments, with only 25% of business leaders focusing on talent development programs, compared to the global average of 31%. Regulatory compliance efforts also lag, with just 23% of Indian businesses prioritizing this area, below the global average of 29%.

This lack of focus on training and compliance has become a significant barrier to achieving full readiness, especially as 59% of Indian business leaders believe that the pace of regulatory changes is moving too fast.

Cybersecurity, Regulatory Changes, and Modernization Challenges

Cybersecurity remains a top concern for business leaders worldwide. Sixty-five percent of executives worry about cyber-attacks, but only 30% feel prepared to manage them. Additionally, 59% of business leaders express concern over environmental and climate disruptions, but only 25% believe their systems are equipped to respond effectively.

Regulatory changes also loom large, with 48% of global respondents fearing the pace of new regulations. However, 66% view regulations positively, seeing them as beneficial to overall business operations.

While these concerns pose challenges, companies that have embraced IT modernization are seeing clear benefits. Over the past year, 85% of businesses reported improved efficiency, 71% noted greater innovation, and 60% saw enhancements in employee and customer experiences. However, there is room for improvement in areas such as data security, compliance, and sustainability, with only 34% reporting positive outcomes in these areas.

Kyndryl Bridge

The report also highlights the potential of automation in transforming IT operations. Kyndryl Bridge data shows that currently, only 8% of IT issues are resolved through automation without human intervention. However, Kyndryl sees the potential for up to 30% of IT problems to be solved through automation, potentially saving businesses billions in maintenance costs and minimizing downtime.

Roadmap to Readiness

Kyndryl’s 2024 Readiness Report underscores the need for businesses to balance technology investments with talent development. Being "people-ready" is just as critical as being "tech-ready," and organizations that foster collaboration between tech and business leaders are better positioned to navigate future challenges. CIOs and CTOs, in particular, must align with other C-suite executives to ensure smooth adoption of new technologies and processes.

Investing in talent development, especially in AI and cybersecurity, will be key to building a future-ready workforce. Additionally, addressing the aging technology infrastructure and reducing tech debt will unlock greater opportunities for growth, innovation, and operational efficiency.

Conclusion

As businesses continue their digital transformation journeys, the 2024 Kyndryl Readiness Report provides a roadmap to help them navigate the complexities of modernization. By aligning technology with talent, embracing automation, and addressing regulatory and cybersecurity concerns, companies can position themselves for long-term success in an increasingly competitive and rapidly evolving market.