Digital services revenue set to skyrocket by 44%, accounting for almost half of company revenue by 2029, according to a report from Endava, a leading tech services company.
Artificial Intelligence forecasted to boost digital services revenue by 44% for Endava by 2029
This surge is pushing businesses worldwide to prioritize operational efficiency, with a growing understanding that modernizing digital infrastructure is key to achieving scalability and cost-effectiveness.
The report, compiled from IDC surveys across Europe, Asia-Pacific region, and the Middle East, highlights that 48% of organizations already view themselves as digital businesses. However, it stresses that the future belongs to those who fully integrate AI into their operations. As businesses shift from constructing digital infrastructure to scaling it, AI and machine learning technologies will be the primary innovators.
The study reveals that 49% of companies attribute excessive digital infrastructure spending to the costs of maintaining legacy systems, underscoring the need for organizations to reassess and streamline their IT operations. AI is predicted to become a critical catalyst for innovation in the next phase of digital transformation, enabling businesses to innovate at scale while reducing automation and intelligence costs.
The report warns that digital transformation is an ongoing journey without a definitive endpoint. AI is poised to lead the next chapter, and businesses reluctant to adopt this technology risk being left behind. Companies that fail to adapt may face competitive disadvantages such as slower time-to-market, less advanced product portfolios, and a weaker industry standing.
IDC research shows that 60% of CEOs have made AI deployment their top priority, underlining the increasing importance of artificial intelligence in business strategy.
A pressing issue highlighted in the report is the expanding reliance on external IT services to fill skill gaps within organizations. Globally, a shortage of talent is identified as a major risk factor for the next 12 months, with 44% of businesses citing limited internal capacity for large-scale digital projects. External IT services providers are becoming increasingly indispensable partners in tackling these challenges and fostering future growth.
In the post-pandemic era of digital acceleration, organizations are now focusing on digital scale—scaling technology, business operations, and data management to meet the demands of a fast-evolving digital economy. Effective data utilization is crucial, as the value of data often starts dwindling within days. Businesses are transitioning to data-driven models to deliver personalized customer experiences and drive continuous innovation.
The next phase of digital transformation is defined by the concept of "AI Everywhere", where AI will be deeply integrated into every aspect of business operations. Critical priorities for organizations include creating intelligent architectures, data-centric platforms, and cost-effective digital infrastructure for AI workloads. Additionally, there must be a focus on attracting and reskilling talent while ensuring regulatory compliance to establish trust with stakeholders.
As businesses continue to modernize, the report emphasizes the importance of aligning digital strategies with market dynamics. In the AI-driven future, organizations that leverage AI, data, and modern infrastructure will be best positioned to lead the next wave of digital innovation.
About Endava
At Endava, technology serves as the means, and people are our motivation.
For over two decades, we've been leveraging technology to bring about transformative change and have a positive impact on people, whether they are employees, customers, or the wider community.
Partnering with leading brands, we develop custom strategies, products, and solutions tailored to unique needs, regardless of industry, region, or scale. By combining world-class engineering, industry expertise, and a people-centric perspective, we collaborate with our customers to create technological solutions that drive innovation and transform businesses. Spanning various industries, including payments, insurance, finance and banking, technology, media, telecommunications, retail and consumer goods, supply chain, healthcare and life sciences, automotive and travel, we guide our customers through every step of their digital transformation journey, crafting dynamic platforms and intelligent digital experiences that foster growth.
From conceptualization to production, we support businesses with bespoke solutions across these verticals. Agile, multidisciplinary teams guide our customers through their digital transformation process, creating robust platforms and intelligent digital experiences that enable growth.
For more information, visit www.endava.com
*This is a Press release.
- As businesses due their digital transformation, Endava, a leading tech services company, emphasizes the importance of integrating artificial intelligence (AI) into every aspect of operations, underscoring technology's critical role in the next phase of digital innovation.
- In partnership with businesses, especially leading brands, Endava leverages AI to create custom strategies, products, and solutions tailored to unique needs, underscoring their commitment to technology-driven change and people-centric vision.
- Recognizing the shortage of talent as a major risk factor for the next 12 months, Endava serves as an indispensable partner in tackling these challenges, fostering future growth by filling skill gaps within organizations through its extensive technological expertise.
