“2024 was a year of significant and meaningful change as we watched IT leaders grapple with the convergence of artificial intelligence, cloud computing, machine learning and automation technologies,” said Ricardo Madan, senior vice president and head of TEKsystems Global Services. “The stakes have never been higher given this accelerated pace of change we’re observing. Our latest findings signal that C-suite leaders are making decisions around technology investments not just to stay current but as a way to drive organizational growth, efficiency and relevance and stand out among competitors. Digital leaders are confident that their investments will meet ROI expectations.”
TEKsystems’ sixth annual State of Digital Transformation report explores themes around technology investments and the IT workforce while spotlighting the characteristics that set digital leaders apart from digital laggards. The top findings include the following:
- Seventy-five percent of digital leaders expect to increase spending in 2025 (compared with 47% of digital laggards).
- The C-suite (42%) is twice as likely to expect a return on transformation initiatives in six months or less, compared with line-level managers (19%) who may have more insight into the practicality of implementations.
- One in 5 organizations have already scaled Gen AI to multiple units or across the enterprise, signaling its transformative impact.
- Nine out of 10 organizations report they don’t have the talent necessary to drive successful digital transformation projects.
- Digital leaders are two times more likely to spend $10 million or more per digital initiative in 2025.
- Cloud-native platforms (72%) and IaaS (71%) lead in adoption, underscoring their vital role in enabling seamless operations and fostering innovation.
- Economic uncertainty continues to impact budgets, with 23% of organizations citing it as a challenge.
“IT decision-makers will need to rely more on cloud platforms and purpose-driven large language models (LLMs) as they continue to scale generative AI internally,” said Ram Palaniappan, chief technology officer at TEKsystems Global Services. “These technologies are foundational for organizations who want to stand out and lead the adoption of solutions seamlessly across the entire enterprise. As businesses accelerate AI initiatives and rely more on the cloud over the next year, having the right data governance, infrastructure and strategy will be crucial ingredients for a successful digital transformation journey.”
To learn more about the report, visit the TEKsystems website.
About the 2025 State of Digital Transformation Report
TEKsystems conducted an online survey from November to December 2024 with 855 technology and business decision-makers. Respondents included members of the C-suite, company executives, vice presidents, directors and managers who have final decision-making authority and/or influence on their organization’s digital transformation efforts. The sample includes a balance of decision-makers in enterprise IT and line-of-business functions in the United States, Australia, Canada, China, India, Singapore, Belgium, France, Germany, Ireland, Netherlands and the United Kingdom across a broad spectrum of industries.
Digital transformation is the strategic use of technology to innovate business processes, foster a forward-thinking culture and elevate customer experiences, all in response to shifting market demands.
Our analysis distinguishes between digital leaders and digital laggards to identify potential opportunities and gaps. Digital leaders are organizations with well-established digital transformation plans, where digital processes and mindsets are deeply embedded. In contrast, digital laggards have tentative plans and limited digital transformation initiatives and investments. This report aims to guide your organization through its digital evolution by leveraging these insights.
About TEKsystems and TEKsystems Global Services
We’re TEKsystems. We accelerate business transformation for our customers. We bring real-world expertise to solve complex technology, business and talent challenges—across the globe. We’re a team of 80,000 strong, working with over 6,000 customers, including 80% of the Fortune 500 across North America, Europe and Asia, who partner with us for our scale, full-stack capabilities and speed. We’re strategic thinkers, hands-on collaborators, helping customers capitalize on change. We’re building tomorrow by delivering business outcomes and driving positive impacts in our global communities. TEKsystems is an Allegis Group company. Learn more at TEKsystems.com.