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CGI's Insights on Digital Transformation

In today's fast-evolving business landscape, organizations are under immense pressure to adapt their operational strategies to stay relevant. CGI, one of the world's largest independent IT and business consulting firms, recently published its annual global research highlighting the major trends impacting C-suite executives and their companies. The findings are based on discussions with over 1,800 executives, predominantly from top management positions, and reveal three significant insights driving businesses forward.

1. Accelerating Value Chain Evolution

A noteworthy takeaway from the research indicates a change in the value chains across various industries. Approximately two-thirds of executives believe that digitization is fundamentally reshaping their business models. This shift is largely influenced by changes in global economic structures and the reconfiguration of supply chains. The data show a rise in concern about this trend, with 38% of respondents highlighting it compared to 25% three years ago, suggesting a growing urgency for businesses to innovate and adapt.

2. Challenges to Return on Investment (ROI)

Despite a strong desire to advance in digital transformation, many executives face considerable obstacles. The uncertainty in both the macroeconomic and geopolitical landscapes is forcing companies to tighten their belts and focus on cost-cutting strategies while also pushing for digital acceleration. Unfortunately, only 28% of the surveyed executives reported that their operational frameworks are agile enough to support rapid digital advancement. A majority pointed to outdated legacy systems as the primary hindrance to implementing effective digital strategies, while nearly 70% expressed ongoing difficulty in attracting and retaining skilled IT talent. Nevertheless, two-thirds of executives plan to sustain or increase their capital expenditures over the next year, with significant investments earmarked for IT initiatives.

3. A Shift in Transformation Approaches

In light of the challenges presented, there is a noticeable shift in how executives perceive the role of digital transformation within their organizations. There is a growing openness to adopt new models focusing on operational efficiency and modernization— with managed services and application modernization becoming critical areas of interest. Notably, the implementation of AI technologies has become a priority, with various organizations increasingly viewing it as a vital tool for enhancing operational efficiency and driving innovation. Data from the research indicated that 35% of organizations are now using traditional AI solutions, while 26% are employing generative AI technologies, both figures showcasing a year-over-year increase.

Francois Boulanger, CGI's President and CEO, reflects on this transition: "Organizations are pursuing ambitious digital transformation targets but must navigate complexities while managing costs and workforce changes. There is a growing demand for partners who can offer both technical skills and extensive industry experience. CGI is committed to being that partner for our clients. Our local insights, paired with global reach, empower us to help our clients realize significant business results through effective transformation strategies."

Rising Investments in AI and Automation

As companies move toward implementing AI solutions more broadly, CGI's research shows a strong commitment to investing in AI and automation. These technologies are increasingly recognized as top priorities for executive teams as they look to facilitate comprehensive digital transformations that yield tangible business benefits.

"Our focus is on enabling clients to responsibly and effectively incorporate AI into their operations, enhancing their innovation agenda and facilitating data-driven decision-making, all within an AI-rich environment," stated Dave Henderson, President of Intelligent Solutions and Innovation at CGI.

For more insights into the trends shaping corporate strategies and detailed analysis on specific industries, visit CGI's dedicated resource at cgi.com/voice-of-our-clients.

About CGI

Founded in 1976, CGI is among the leading independent IT and business consulting services firms globally, with a workforce of over 94,000 professionals. The company's comprehensive service portfolio includes everything from strategic consulting and systems integration to managed IT and business process services. CGI prides itself on fostering local client relationships, supported by a robust global network designed to assist organizations in their digital transformation journeys. According to their Fiscal 2024 report, CGI recorded revenues of CA$14.68 billion, further solidifying its position as a major player within the industry.