Tata Consultancy Services Finds Business Leaders Are Doubling Down on Cloud as a Long-Term Catalyst for Innovation, AI-Powered Transformation and Sustainability
AUCKLAND | New Zealand, June 16, 2023: Tata Consultancy Services’ (TCS) (BSE: 532540, NSE: TCS) latest survey of senior business leaders worldwide, ‘Connected Future: How Cloud Drives Business Innovation’ reveals that cloud remains a long-term investment priority for 70% of major corporations globally, despite current macro headwinds and the recent slowing of growth of global cloud spending.
The global survey of approximately 1,000 senior executives reveals that innovation is a major driver of cloud investment, with 63% in New Zealand reporting that cloud is crucial as a catalyst for innovation for their organisation’s future – even more than the global average of 59%.
This appears particularly true for artificial intelligence (AI): 75% (global) 75% (NZ) of respondents invested in AI and machine learning capabilities over the past two years, while 78% (global) 75% (NZ) plan to do so over the coming 12-24 months. Both technologies are highly dependent on access to large amounts of data and scalability through cloud.
Interestingly, a quarter of New Zealand respondents have made progress in their goals for cloud-enabled innovation in the form of new business models, underlining the growing power of cloud to drive new revenue.
In addition, the study also finds half of businesses in New Zealand are using cloud technologies to achieve sustainability goals.
Overall, despite significant progress in recent years, the study reveals that businesses still have a long way to go to unlock the full power and potential of cloud. Other key findings include:
Industry clouds or ‘vertical clouds’ are rapidly emerging as a fast path to acquiring greater business expertise and capabilities, with all New Zealand organisations surveyed (100%) reporting that they are already assessing, adopting, or using them in business today (73% globally).
Companies want to participate in digital ecosystems, but most are still far from realising their full value: 88% of businesses in New Zealand of businesses are still in the earliest stages of transition towards mature digital ecosystems (66% globally).
Critical skills shortages continue to affect businesses in the cloud space, with over half (52%) of respondents globally reporting a lack of full cloud proficiencies in-house.
Vikram Singh, Country Head of Australia and NZ at TCS, comments: “This latest global study strongly affirms that there is no business strategy without a cloud strategy. A desire for greater efficiency, resilience, and flexibility drove early cloud adoption, and these remain critical factors. Businesses now more fully understand how cloud drives business growth and innovation for the long-term, and for most, the journey is only just getting started.”
“Cloud is a frequent source of short-term ROI anxieties, but growth and transformation is a long game. Reconciling these two realities is a challenge and a necessity, but fully achievable with the right strategy and planning. This is critical because cloud is now the unifying digital fabric of every enterprise, fueling powerful technologies—from generative AI to edge and quantum computing—and is ushering the next wave of innovations now and into the future,” Vikram Singh adds.
The 2023 TCS global Cloud Study surveyed 972 senior executives at companies exceeding $1 billion in annual revenue from multiple sectors across Asia, Europe and North America. A majority of the companies report annual revenues in excess of $5 billion. Individual markets surveyed include:
· Continental Europe (Germany, Spain, France, Switzerland, Sweden, Norway, Finland, Belgium, the Netherlands, Luxembourg).
· UK & Ireland
· North America (USA, Canada, Mexico).
· APAC (India, Japan, Australia, New Zealand).
To read the full report and receive further information, please visit www.tcs.com/insights/global-studies.
About Tata Consultancy Services
Tata Consultancy Services is an IT services, consulting and business solutions organisation that has been partnering with many of the world’s largest businesses in their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions. This is delivered through its unique Location Independent Agile™ delivery model, recognised as a benchmark of excellence in software development.
A part of the Tata group, India’s largest multinational business group, TCS has over 613,000 of the world’s best-trained consultants in 55 countries. The company generated consolidated revenues of US $25.7 billion in the fiscal year ended March 31, 2022 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. TCS’ proactive stance on climate change and award-winning work with communities across the world have earned it a place in leading sustainability indices such as the MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit www.tcs.com
