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Majority of companies in Asia already digitally enabled

Adrian M. Reodique | Oct. 26, 2016
Forty-one percent of CIOs said they now have less control over their companies’ IT spending.

Majority of companies in Asia (80 percent) are now digitally enabled, according to a survey by solutions provider, Logicalis.

The Logicalis Global CIO Survey 2016 polled more than 800 CIOs worldwide, of which 101 were from Asia.

The survey found that digital adoption follows the innovation bell curve. Most of the digitally enabled companies in the region are early majority adopters (53 percent), while 21 percent are early adopters and 20 percent are late majority. Only six percent are digital disrupters.

As businesses embark on their digital transformation journey, some CIOs said they now have less control over their companies' IT spending.

For instance, 41 percent of the respondents said they make half or less of their companies' spending decisions. While more than a third (37 percent) said their companies are buying technologies often, very often, or most of the time without involving IT at all.

In line, the survey found that one of the results of this loss of control is the emergence of distributed IT environments. However, it noted the decentralisation of IT is no longer seen as subversive, but rather an essential element of digital transformation. 

In fact, 84 percent of the respondents in Asia said that lines of business now employ IT talents to support business functions like software, applications, and cloud services. It was also found that some CIOs work with shadow IT departments on a daily (21 percent) or weekly (43 percent) basis. 

Meanwhile, about three quarter of the polled CIOs in the region (72 percent) considered security as a challenge on their digital transformation. They indicated data sovereignty (37 percent), and local data regulations (26 percent) as top security concerns.

Additionally, majority of the respondents in Asia (52 percent) expect the prevalence of increasingly sophisticated threats to be the top issue over the next 12 months. They also expect to face issues such as ransomware and corporate extortion (63 percent).

"The results clearly indicate that digital transformation is already impacting organisations and we are seeing IT decisions increasingly being distributed throughout the business rather than being held centrally by IT. CIOs will have to work closely with line of business employees, who are now more tech savvy, to drive innovation and deliver better business outcomes," said James Tay, CEO of Logicalis Asia, in a press release. 

 

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