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Kyndryl Readiness Report: 90% Confident in IT, but 39% Say It's Future-Ready

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Kyndryl's 2024 Readiness Report reveals a paradox in IT infrastructure readiness. While 90% of executives believe their IT is best-in-class, only 39% think it's future-ready. The report, based on feedback from 3,200 senior decision-makers and insights from Kyndryl Bridge, highlights key challenges:

1. AI ROI is , with only 42% seeing positive returns.
2. 44% of mission-critical IT infrastructure is approaching or at end-of-life.
3. Over 40% of leaders face technology skills gaps.
4. 65% of executives worry about cyber-attacks, but only 30% feel prepared.
5. Regulatory concerns are high, with 48% believing the pace is too fast.

The report emphasizes the importance of balancing technology and talent, addressing end-of-life technology challenges, and fostering collaboration between business and technology leaders to enhance readiness in a rapidly changing business landscape.

Il Report di Prontezza 2024 di Kyndryl rivela un paradosso nella preparazione delle infrastrutture IT. Sebbene il 90% dei dirigenti creda che il proprio IT sia di livello eccellente, solo il 39% è convinto che sia pronto per il futuro. Il report, basato su feedback di 3.200 decisori senior e su approfondimenti di Kyndryl Bridge, evidenzia le principali sfide:

1. Il ROI dell'IA è, con solo il 42% che vede ritorni positivi.
2. Il 44% dell'infrastruttura IT mission-critical è vicino o ha raggiunto la fine della sua vita utile.
3. Oltre il 40% dei leader affronta lacune nelle competenze tecnologiche.
4. Il 65% dei dirigenti è preoccupato per gli attacchi informatici, ma solo il 30% si sente preparato.
5. Le preoccupazioni normative sono elevate, con il 48% che ritiene che il ritmo sia troppo veloce.

Il report sottolinea l'importanza di bilanciare tecnologia e talenti, affrontare le sfide delle tecnologie a fine vita e promuovere la collaborazione tra i leader aziendali e tecnologici per migliorare la prontezza in un panorama commerciale in rapida evoluzione.

El Informe de Preparación 2024 de Kyndryl revela una paradoja en la preparación de la infraestructura IT. Mientras que el 90% de los ejecutivos creen que su IT es de primera clase, solo el 39% piensa que está preparado para el futuro. El informe, basado en comentarios de 3,200 tomadores de decisiones senior y en las perspectivas de Kyndryl Bridge, destaca los principales desafíos:

1. El ROI de la IA es, con solo el 42% viendo retornos positivos.
2. El 44% de la infraestructura IT crítica está llegando al final de su vida útil o ya está obsoleta.
3. Más del 40% de los líderes enfrentan brechas en habilidades tecnológicas.
4. El 65% de los ejecutivos se preocupa por los ciberataques, pero solo el 30% se siente preparado.
5. Las preocupaciones regulatorias son altas, con un 48% que cree que el ritmo es demasiado rápido.

El informe enfatiza la importancia de equilibrar tecnología y talento, abordar los desafíos de las tecnologías obsoletas y fomentar la colaboración entre los líderes de negocio y tecnología para mejorar la preparación en un entorno empresarial en rápida evolución.

Kyndryl의 2024 준비 보고서는 IT 인프라 준비의 역설을 드러냅니다. 90%의 경영진이 자신들의 IT가 최고 수준이라고 믿지만, 오직 39%만이 미래 준비가 되어 있다고 생각합니다. 이 보고서는 3,200명의 고위 의사결정자의 피드백과 Kyndryl Bridge의 통찰력을 바탕으로 주요 과제를 강조합니다:

1. AI ROI는, 긍정적인 수익을 보고하는 비율이 42%에 불과합니다.
2. 비즈니스의 핵심 IT 인프라의 44%가 수명 끝에 다가오고 있습니다.
3. 40% 이상의 리더들이 기술적 인재 부족에 직면해 있습니다.
4. 65%의 경영진이 사이버 공격에 대해 우려하고, 단 30%만이 준비가 되어 있다고 느낍니다.
5. 규제 우려는 높으며, 48%가 속도가 너무 빠르다고 믿습니다.

이 보고서는 기술과 인재의 균형을 맞추고, 기술의 수명 종료 문제를 해결하며, 비즈니스와 기술 리더 간의 협력을 촉진하는 것이 빠르게 변화하는 비즈니스 환경에서 준비태세를 향상시키는 데 중요하다고 강조합니다.

Le Rapport de Prêt 2024 de Kyndryl révèle un paradoxe dans la préparation des infrastructures informatiques. Bien que 90 % des dirigeants croient que leur IT est de premier plan, seulement 39 % pensent qu'elle est prête pour l'avenir. Le rapport, basé sur les retours de 3 200 décideurs seniors et les insights de Kyndryl Bridge, met en lumière les principaux défis :

1. Le ROI de l'IA est, avec seulement 42 % constatant des retours positifs.
2. 44 % des infrastructures informatiques critiques de la mission approchent de la fin de vie.
3. Plus de 40 % des dirigeants font face à des lacunes en matière de compétences technologiques.
4. 65 % des dirigeants s'inquiètent des cyberattaques, mais seulement 30 % se sentent préparés.
5. Les préoccupations réglementaires sont élevées, 48 % estiment que le rythme est trop rapide.

Le rapport souligne l'importance d'équilibrer technologie et talents, de traiter les défis posés par les technologies en fin de vie, et de favoriser la collaboration entre les leaders commerciaux et technologiques pour améliorer la préparation dans un paysage commercial en rapide évolution.

Der Bereitschaftsbericht 2024 von Kyndryl zeigt ein Paradoxon in der IT-Infrastruktur-Bereitschaft auf. Während 90% der Führungskräfte glauben, dass ihre IT erstklassig ist, denken nur 39%, dass sie zukunftsfähig ist. Der Bericht basiert auf Rückmeldungen von 3.200 leitenden Entscheidungsträgern und Erkenntnissen von Kyndryl Bridge und hebt die wichtigsten Herausforderungen hervor:

1. Der ROI bei KI ist, wobei nur 42% positive Renditen sehen.
2. 44% der unternehmenskritischen IT-Infrastruktur stehen kurz vor dem Ende ihrer Lebensdauer oder sind bereits am Ende ihrer Lebensdauer.
3. Über 40% der Führungskräfte sehen sich mit einem Mangel an technischen Fähigkeiten konfrontiert.
4. 65% der Führungskräfte sind besorgt über Cyberangriffe, aber nur 30% fühlen sich vorbereitet.
5. Die regulatorischen Bedenken sind hoch, 48% glauben, dass das Tempo zu schnell ist.

Der Bericht betont die Bedeutung der Balance zwischen Technologie und Talent, die Auseinandersetzung mit Herausforderungen alter Technologien und die Förderung der Zusammenarbeit zwischen Geschäfts- und Technologieführern, um die Bereitschaft in einer sich schnell verändernden Geschäftslandschaft zu verbessern.

Positive
  • 94% of leaders prioritize technology modernization
  • 85% of businesses report improved efficiency from modernization projects
  • 71% experience greater innovation from IT modernization
  • 60% see improved employee or customer experience from modernization efforts
  • 66% of executives view regulation as having a positive effect overall
Negative
  • Only 39% of executives believe their IT infrastructure is ready for future risks
  • Only 42% of businesses see positive ROI from AI investments
  • 44% of mission-critical IT infrastructure is approaching or at end-of-life
  • Over 40% of leaders face technology skills gaps hindering modernization
  • 65% of executives worry about cyber-attacks, with only 30% feeling prepared
  • Only 34% see improved data security and compliance from modernization efforts
  • Only 27% report sustainability-based outcomes from IT modernization

Insights

Kyndryl's 2024 Readiness Report reveals a significant disconnect in IT infrastructure perception. While 90% of executives believe their IT is best-in-class, only 39% think it's future-ready. This gap highlights potential overconfidence and underpreparedness in many organizations.

Key findings include:

  • Only 42% of businesses see positive ROI from AI investments, with data privacy and compliance being major barriers.
  • 44% of mission-critical IT infrastructure is nearing or at end-of-life, posing significant risks.
  • 65% of executives worry about cyber-attacks, but only 30% feel prepared to manage them.

These insights suggest that many companies are struggling with the rapid pace of technological change and may be vulnerable to disruptions. The report emphasizes the need for better alignment between technology investments and business goals, as well as the importance of addressing skills gaps and outdated infrastructure.

For Kyndryl (KD), this report could position them as a thought leader in IT modernization and potentially drive demand for their services. However, the company will need to demonstrate how they can help clients overcome these challenges to capitalize on this opportunity.

The Kyndryl Readiness Report provides valuable insights into the IT landscape, but its direct financial impact on Kyndryl (KD) is not immediately clear. However, the report's findings could indirectly benefit the company's business prospects:

  • The identified gaps in IT readiness and modernization present opportunities for Kyndryl's services.
  • Low AI ROI and barriers to adoption could drive demand for Kyndryl's AI implementation and management services.
  • Concerns about cybersecurity and end-of-life infrastructure may increase interest in Kyndryl's security and modernization offerings.

With a market cap of $5.77 billion, Kyndryl's positioning as an expert in addressing these challenges could potentially boost its market value. However, the report doesn't provide specific financial projections or contract wins resulting from these insights.

Investors should monitor how Kyndryl leverages this report to drive sales and whether it translates into increased revenue and profitability in upcoming quarters. The company's ability to capitalize on the identified market needs will be important for its financial performance.

Inaugural global study, with exclusive data from AI-powered Kyndryl Bridge, shows how executives rank risks, prioritize investments, and balance technology and talent

  • Security and regulations top lists of executives' concerns
  • AI return on investment limited by skills, compliance, compatibility
  • End-of-life technology a top challenge for CEOs
  • Talent drives overall readiness

NEW YORK, Oct. 16, 2024 /PRNewswire/ -- Kyndryl today released the 2024 Kyndryl Readiness Report, which explores the paradox of why 90% of executives believe their IT infrastructure is best-in-class but only 39% of them think it's ready to manage future risks. The report also shows how IT modernization is helping companies gain a competitive edge, even as just 42 percent of businesses currently see positive return on investment from AI.

In the digital economy, business leaders say they're relying on their IT to mitigate risk, build talent and take advantage of new tools. Yet while 94% of leaders say technology modernization is a high priority for their companies, data from Kyndryl shows that 44% of mission-critical IT infrastructure is approaching or at end-of-life, increasing vulnerability and raising barriers to modernization. Business leaders say they need help with decision making and talent development.

The Kyndryl Readiness Report combines feedback from 3,200 senior decision-makers with insights from Kyndryl Bridge, the Company's AI-powered digital business platform, to illustrate global business challenges and opportunities across markets and industries.

Additional highlights:

  • AI ROI elusive: While 76% of businesses are investing in traditional AI and machine learning, only 42% see a positive return on investment. The biggest barriers to AI adoption remain data privacy concerns (31%), uncertain ROI (30%) and compliance challenges (26%).
  • End-of-life technology challenge: Nearly all modern businesses face the challenge of keeping their systems up to date. 64% of CEOs are worried about outdated IT, and Kyndryl Bridge shows that 44% of mission-critical IT infrastructure is approaching or at end-of-life.
  • Technology is outpacing training: Over 40% of leaders are experiencing technology skills gaps that hinder modernization progress.
  • Security still top concern: 65% of executives are worried about cyber-attacks, and only 30% feel ready to manage those risks.
  • Leaders report business-tech alignment: Companies farther along in digital transformation report greater collaboration between business and technology leaders, and greater ROI on technology projects.

"The work we do at Kyndryl to run and transform complex IT infrastructures for thousands of enterprise customers, has given us a deep perspective on how companies can identify opportunities to overcome today's business challenges," said Martin Schroeter, Chairman and CEO of Kyndryl. "Readiness is an ongoing challenge and it's about empowering people, aligning tools with culture and embracing the complex journey of digital transformation across the entire organization."

Report maps out risks and benefits

Cybersecurity tops the list of business concerns: 65% of business leaders are worried about cyberattacks, and only 30% feel ready to manage them. Similarly, 59% express concern over climate and environmental disruptions, yet just 25% believe their systems can effectively respond.

An accelerating regulatory landscape is also top of mind for executives, as major measures come online. While 48% of executives are concerned that the pace of regulation is moving too fast, 66% see regulation as having a positive effect overall.

Despite these challenges, businesses that do modernize are realizing clear benefits from those projects. Looking back on the past year, leaders said they have experienced improved efficiency (85%), greater innovation (71%) and an improved employee or customer experience (60%). However, there is still room to improve as executives see less of an impact in data security and compliance with regulations (34%) and from sustainability-based outcomes such as decreased energy use or emissions (27%).

Even companies that have adopted more advanced IT tools, like automation programs that monitor and solve for issues across an entire IT estate, have room for additional improvement. Kyndryl Bridge shows an average of 8% of IT issues are remediated by automation without human intervention. Kyndryl sees the potential for up to 30% of IT issues being resolved through automation - potentially saving companies billions of dollars per year in maintenance costs and prevented downtime.

Creating a roadmap to readiness
As the data indicates, organizations face tough decisions in their readiness journeys. By plotting out blind spots and difficult trade-offs, the Report offers a roadmap to readiness in a rapidly changing business landscape.

  1. Being 'people-ready' is just as important as being 'tech-ready.' IT is everyone's business. Organizations farther along on their technology journeys also report alignment between business and technology leaders. With IT playing a more prominent role in shaping workplace culture and processes, CIOs and CTOs who collaborate across the C-suite will be more prepared to bring employees along with upgrades in technology. Leaders who nurture a skilled workforce are more likely to feel ready for future risks, so investing in talent development, particularly in AI and cybersecurity, is crucial.
  2. Weigh the new vs. the familiar: To build the case for smart investments, leaders need to understand how new tools will integrate not only with technology but the company culture, processes and goals. Balancing immediate needs with long-term investments will help leaders navigate complex modernization challenges. And new capabilities, like AI, rely on a solid data foundation; investing in the foundation first may achieve higher ROI in the long term.
  3. Reframe the conversation about tech debt: The data shows that in an evolving market, with nearly everyone confronting aging infrastructure, businesses are not alone in the end-of-life technology challenges. Reducing technical debt eliminates operational inefficiencies and unlocks potential for faster growth—an investment in future agility and innovation. This includes fully embracing new capabilities like automation to increase efficiency and reduce downtime.

To read the full report, read Kyndryl's 2024 Readiness Report.

Methodology
The 2024 Kyndryl Readiness Report is based on a comprehensive survey conducted by Edelman DXI, gathering insights from 3,200 senior decision-makers across 25 industries, including healthcare, manufacturing, energy, and finance. The survey, conducted between July 1 and August 12, 2024, captured perspectives from C-suite executives (CEOs, CFOs, CIOs, and CTOs) and senior directors from companies across 18 global markets, including the United States, Brazil, China, Germany, and the UK.

About Kyndryl 
Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider, serving thousands of enterprise customers in more than 60 countries. The company designs, builds, manages and modernizes the complex, mission-critical information systems that the world depends on every day. For more information, please visit www.kyndryl.com.

Kyndryl Press Contact
press@kyndryl.com

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SOURCE Kyndryl

FAQ

What percentage of executives believe their IT infrastructure is best-in-class according to Kyndryl's 2024 Readiness Report?

According to Kyndryl's 2024 Readiness Report, 90% of executives believe their IT infrastructure is best-in-class.

How many companies are seeing positive ROI from AI investments as per Kyndryl's report?

The report indicates that only 42% of businesses are seeing a positive return on investment from AI.

What percentage of mission-critical IT infrastructure is approaching or at end-of-life according to Kyndryl Bridge data?

Kyndryl Bridge data shows that 44% of mission-critical IT infrastructure is approaching or at end-of-life.

What is the top concern for executives according to Kyndryl's 2024 Readiness Report?

The top concern for executives is cybersecurity, with 65% worried about cyber-attacks and only 30% feeling ready to manage them.

How many senior decision-makers were surveyed for Kyndryl's 2024 Readiness Report?

Kyndryl's 2024 Readiness Report is based on a survey of 3,200 senior decision-makers across 25 industries and 18 global markets.

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