Artificial Intelligence set to fuel a 44% increase in digital services revenue for Endava by 2029.
Digital Services Revenue Soaring High: Rapid Shift Towards AI-driven Businesses
By 2029, digital services revenue is expected to surge by an impressive 44%, escalating from 34% to nearly 49% of total company revenue, according to a recent report by Endava, a leading technology services company. This monumental shift is prompting businesses worldwide to focus on operational efficiency, with a growing understanding of the necessity to upgrade digital infrastructure for scalability and cost-effectiveness.
The report emphasizes the significance of AI integration, as global organizations transform from simply building digital infrastructures to scaling them. As AI and machine learning (ML) technologies play a key role in innovation, businesses that fully embrace AI are poised to dominate the future.
Astonishingly, 48% of organizations already consider themselves digital businesses, but the report indicates that businesses reluctant to adapt to AI-driven markets may face competitive disadvantages, such as slow time-to-market, outdated product portfolios, and weaker sector positions. Alarmingly, 60% of CEOs have prioritized AI deployment in their business strategies, underscoring the importance of AI to businesses worldwide.
As businesses race towards a phase of digital scale, integrating AI essential for innovation while reducing automation and intelligence use-case costs. Notably, 49% of companies attribute overspending on digital infrastructure to the expense of maintaining legacy systems, indicating the need for organizations to reevaluate and streamline their IT operations.
The report also stresses that digital transformation is an ongoing journey, with AI poised to lead the next chapter. In the AI-dominated future, businesses that leverage AI, data, and modern infrastructure will be well-positioned to drive digital innovation.
Curiously, a pressing issue highlighted in the report is the growing dependence on external IT services to address organizations' internal skill gaps. Globally, a shortage of talent is identified as a major risk factor for the coming 12 months, with 44% of businesses reporting a lack of internal capacity for large-scale digital projects. Fortunately, external IT service providers continue to emerge as vital partners in overcoming these challenges and enabling growth.
In the post-pandemic era of digital acceleration, businesses are focusing on scaling technology, operations, and data management to meet the demands of a rapidly evolving digital economy. An essential focus is on leveraging data more effectively to deliver personalized experiences and drive continuous innovation. By the end of the next chapter in digital transformation, AI will be deeply embedded within every aspect of business operations, forming the essence of "AI Everywhere."
To stay competitive, companies must also prioritize regulatory compliance, attracting and reskilling talent, and the creation of intelligence architectures, data-centric platforms, and affordable digital infrastructure for AI workloads. From ideation to production, Endava offers tailored services to businesses, helping navigate open seas of digital transformation and unlock the true potential of AI.
(This is a reimagined press release.)
About Endava
With a people-centric mindset, Endava has been harnessing technology to drive meaningful change for over two decades. By partnering with leading brands across industries, we craft bespoke solutions aimed at innovative problem-solving. Blending world-class engineering, industry expertise, and a passion for people, we guide our customers through every step of their digital transformation journeys. From ideation to production, we support businesses with unparalleled services across various sectors, including payments, insurance, finance and banking, technology, media, telecommunications, retail and consumer goods, supply chain, healthcare and life sciences, automotive and travel. For more information, visit www.endava.com.
- Endava, a leading technology services company, highlights the importance of integrating artificial intelligence (AI) into digital infrastructure, as it is poised to drive innovation and scalability for businesses worldwide.
- Notably, 60% of CEOs have prioritized AI deployment in their business strategies, underscoring the significance of AI to companies listed on the NYSE (New York Stock Exchange), as they strive to remain competitive in the rapidly evolving digital economy.
- To navigate the open seas of digital transformation and unlock the true potential of AI, Endava offers tailored services to a diverse range of industries, including tech, finance, healthcare, automotive, and more, emphasizing their commitment to technological advancements and the integration of AI-driven artificial intelligence.
