Although 90% of managers consider that their technological infrastructure is excellent, only 39% believe that it is prepared to face future risks (in Spain, this figure is 41%). This is highlighted by Kyndryl’s report, “Kyndryl Readiness Report 2024”, where it also points out that, although technological modernization is providing a competitive advantage to companies, only 42% see a positive return on investment in AI.
In today’s digital economy, business leaders rely on technology to mitigate risks, develop talent, and leverage new tools. However, while 94% of managers prioritize technology modernization, Kyndryl data indicates that 44% of critical technology infrastructure is reaching the end of its useful life, increasing vulnerability and making modernization difficult.
In addition, companies need support in decision-making and talent development. In Spain, 80% of managers surveyed say that their organizations have difficulties keeping up with technological advances, while globally this figure is 62%.
“The work we do at Kyndryl to transform complex IT infrastructures has given us deep insight into how businesses can overcome today’s challenges,” said Martin Schroeter, President and CEO of Kyndryl. “Readiness is an ongoing challenge that involves training people, aligning tools with culture, and embracing digital transformation across the organization.”
Implementation of technology in companies
Among the highlights of the report are:
- Difficulty in achieving AI ROI: Although 76% of companies invest in AI and machine learning, only 42% see a positive return. The main obstacles are data privacy (31%), uncertainty about ROI (30%) and compliance issues (26%).
- End-of-life technology challenge: 64% of general directors are concerned about the obsolescence of IT, a figure that in Spain is 66%. Kyndryl Bridge shows that 44% of critical IT infrastructure is near the end of its useful life.
- Gaps in technological skills: More than 40% of leaders see gaps in technological skills that slow modernization.
- Safety concerns: 65% of managers are worried about cyberattacks, but only 30% feel prepared to manage them.
- Alignment between business and technology: The most advanced companies in digital transformation show greater collaboration between business and technology leaders, and a greater return on investment in technological projects.
The report combines 3,200 surveys conducted in several countries, including Spain, with exclusive data from the AI platform Kyndryl Bridge
Risks and benefits
Cybersecurity is the main business concern: 65% of managers fear cyberattacks and only 30% feel prepared to manage them. Additionally, 59% are concerned about climate change and environmental issues, but only 25% believe their systems can respond effectively.
The accelerated pace of regulation also worries executives, although 66% believe that regulation has an overall positive effect. Despite these challenges, companies that modernize report clear benefits, such as improved efficiency (85%), greater innovation (71%), and a better experience for employees and customers (60%). However, there is still room for improvement in areas such as data security and regulatory compliance (34%) and sustainability (27%).
Even companies that have adopted advanced tools, such as automation programs, have room for improvement. Kyndryl Bridge shows that an average of 8% of IT problems can be solved by automation without human intervention, with the potential to increase this figure to 30%, which could save billions of dollars in maintenance costs and avoid downtime.
Roadmap for the future
The Readiness Report highlights that companies face difficult decisions in their preparation. By identifying weaknesses and solutions, the report offers a roadmap for preparedness in an ever-evolving business environment.
- Professional and technological preparation: IT is everyone’s responsibility. Organizations advanced in their technology journey show alignment between business and technology leaders. Investing in talent development, especially in AI and cybersecurity, is crucial.
- Balance between the new and the known: Managers must understand how new tools will integrate with the company’s technology, culture, processes and objectives. Investing in a solid foundation first can achieve a greater return in the long term.
- Reframe tech debt: Reducing technical debt eliminates inefficiencies and unlocks potential for faster growth and greater agility and innovation. Embracing new capabilities like automation can increase efficiency and reduce downtime.
