REGIONAL ROUND-UP
AFRICA APAC EUROPE MIDDLE EAST NORTH AMERICA
HALF OF FIRMS CITE COST OF MAINTAINING LEGACY SYSTEMS AS MAIN REASON FOR OVERSPENDING
Endava , a leading provider of nextgeneration technology services , has launched an IDC InfoBrief , sponsored by Endava , Navigating the Digital Shift . The IDC InfoBrief explores how AI can unlock new potential for organisations , but only if they are supported by the right core infrastructure investments .
Compiled from IDC surveys across Europe , APAC and the Middle East , the paper reveals that digital services revenue is set to rise by 44 %, expanding from 34 % to half ( 49 %) of organisational revenue by 2029 . However , the paper highlights an urgent need to modernise for greater operational efficiency . Half of all surveyed firms ( 49 %) attribute overspending on digital infrastructure to the cost of maintaining legacy systems , underscoring the need for change .
The research also reinforces the importance of data quality as the backbone of resilient core infrastructure , yet one in three companies report that poor data quality or inadequate infrastructure hampers their ability to achieve higher success rates in Generative AI projects . This could have a significant impact , given that 70 % of firms believe Generative AI has either begun disrupting their business or will do so in the next 18 months .
With this in mind , AI solution spending aligns with growth expectations , with 51 % of organisations prioritising IT investments to enable growth , followed by access to skills ( 41 %) and addressing insufficient internal capacity ( 38 %). This is also driven by the C-suite agenda ; while transforming business processes is the leading shortterm modernisation and transformation
initiative in support of digital business ambitions across all personas ( as nominated by 54 % of IDC survey respondents ), 60 % of CEOs highlighted deploying AI , Machine Learning or GenAI , making it their leading priority .
Analysis found that we ’ ve moved from a state of ‘ Generative AI scramble ’ from 2023 – 24 to ‘ the AI pivot ’ in 2025 – 26 , to result in ‘ the AI-fuelled business ’ in three years ’ time . These findings highlight a critical juncture for organisations to move beyond experimentation and adopt a structured approach to AI projects , aiming to operate AI-fuelled businesses . Additionally , 47 % of firms identified strong strategic partnerships as the key factor in the success or failure of Generative AI projects . Half of organisations are set to expand and diversify their partner networks ,
John Cotterell , CEO , Endava
recognising collaboration as key to unlocking AI ’ s full potential .
Endava CEO , John Cotterell , said : “ To navigate the fast-changing markets in the era of AI , companies must modernise their core systems and address outdated legacy structures . As we advance towards AI-driven business transformation , core modernisation is a foundational step .”
“ Our research shows that businesses are actively looking to invest in AI . However , addressing existing systems through internal modernisation , new technology investments or partner network diversification is a critical first step in doing so . It ’ s encouraging to see industry leaders recognising this value , and as AI becomes increasingly ubiquitous , core modernisation will continue to rise as a key enabler of success in the digital era .” x
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