Costly digital transformation delays faced by 88% IT decision-makers

As digital transformation remains top of the agenda for many businesses, research conducted for the low-code application development platform, Toca, reveals the extent of the challenges faced by IT teams in delivering these projects.

Looking at the top barriers to successful transformation, IT decision makers cited budget constraints, a lack of collaboration across the wider business, legacy systems, a shortage of developers, and integration challenges as the top five. Consequently, 88 per cent of IT decision-makers are facing costly project delays, with the average digitalisation delay lasting five months at a cost of £20,200 a day, totalling £3,070,400.

The survey of 200 IT decision makers reveals:

  • 68% of organisations’ digital transformation projects are now expected to be delivered three times faster than five years ago.
  • 72% of IT leaders say the waiting lists for digital projects are getting longer.
  • 71% of IT leaders are struggling with the pressure of innovation.
  • Employee satisfaction, customer service, and productivity are the top three areas being negatively affected by failure to match the speed of expected delivery for new applications or systems.
  • 72% of IT leaders believe the days of large-scale projects are over, favouring smaller projects that deliver incremental business benefits faster.

Mat Rule, Founder, and CEO of Toca said, “organisations are focusing attention on digital transformation projects to drive new business opportunities and to meet the growing expectation for seamless customer journeys, which have been heightened by newer, digital-first competitors entering the market. This has placed IT teams under significant pressure, with issues like shorter timelines, tight budgets, and legacy processes impacting the success of the projects. And with spiralling cost overruns and delays lasting months at a time, businesses are facing a growing issue as they try to deliver value with new applications and systems.”

Despite organisations making progress with digital transformation, almost all (94%) IT leaders confirm that ‘building apps, connecting systems and automating processes faster is business imperative.’ To combat this, 89 per cent of IT decision makers state they would prefer to leverage legacy systems to speed up digital projects, rather than rewrite and platform them.

Yet the pressure to deliver is forcing organisations into sacrificing best practice for quick delivery.  In fact, 80 per cent of IT leaders agree that the need for speed with digital projects is increasing technical debt in their organisation. This can impact other projects by creating a knock-on effect, with 76 per cent of IT decision makers in agreement that technical debt holds them back from taking on new projects.

This is hampering organisations’ ability to deploy digital technologies, with respondents reporting that on average they are only able to address one in four problems with digital transformation. Over three-quarters (79%) of IT decision makers confirm that processes aren’t automated because of time, cost, or complexity, despite the data revealing that automating manual tasks could save the average employee over five hours a week.

Mat added, “digital transformation projects are proving challenging for businesses, as they tackle delays and cost overruns. In order to drive quick digital wins and solve more business problems, organisations need to empower their development teams to be more productive and overcome the restraints of legacy technologies. To achieve this, businesses are increasingly looking at solutions like low-code development, which can enable IT teams to deliver flexible digital services in a matter of days, drastically reducing the cost and time of traditional development. Using low-code, businesses can build digital wrappers around their legacy systems and then integrate apps and portals to drive digital journeys.”

More News
14 hours ago
Pentel counts down to Christmas with social media campaign
Pentel has launched a social media Christmas campaign to deliver inspiration and creativity throughout the festive season.
16 hours ago
Sharp/NEC to exhibit at ISE 2023
Sharp NEC Display Solutions Europe will be exhibiting at Integrated Systems Europe (ISE) 2023, from 31st January until 3rd February.
17 hours ago
CityFibre’s new process reduces need for wayleaves
Independent full fibre platform, CityFibre, has launched a new process aimed at reducing the need for wayleaves.
18 hours ago
JGBM Integra’s Distributor of the Year
Integra Business Solutions has awarded JGBM with the ‘Distributor of the Year’ award at the recent ‘Strength Through Unity’ National Conference held at the Hilton Hotel, St George’s Park, on 17th November.
3 days ago
BOSS Industry Awards winners announced
Yesterday evening (24th November), over 450 in the industry came together for the BOSS Industry Awards 2022 to celebrate individuals, teams and businesses who have excelled this year.
3 days ago
CityFibre wins Best Infrastructure Provider over 100k
CityFibre, UK independent full fibre platform, has picked up the award for Best Infrastructure Provider over 100k Premises Passed at this year’s ISPA Awards, in recognition of the company’s pace of network build over the last 12 months.
3 days ago
TD SYNNEX voted Distributor of the Year
TD SYNNEX has been voted Distributor of the Year in the CONTEXT ChannelWatch 2022 awards, based on the votes of channel partners across Europe. TD SYNNEX also came out on top in the European categories for innovation, retail, and cloud as well as winning several country awards.
3 days ago
Abloy UK’s Roy Buckingham receives GAI Award
Abloy UK has announced that Roy Buckingham, Regional Specification Development Manager, London & South East has been given the Customer Focus Award at the new Guild of Architectural Ironmongers (GAI) Community Awards.
4 days ago
Exertis unveils newly appointed AV leadership team
Exertis has revealed its new line-up of AV talent which is heading up the Exertis Pro AV division.
4 days ago
Gigamon announces new Channel & Alliances Director EMEA
Gigamon, the deep observability company, has welcomed Jon Kane as Channel & Alliances Director EMEA.

Login / Sign up