According to a recent study by Accenture, many healthcare providers are implementing new systems to stay competitive, but are being held back by their outdated legacy systems. The study found that three-quarters of the companies surveyed reported a technology gap of 55% or more in their legacy systems in the year 2023. This gap is hindering their productivity and innovation.
A recent study by Accenture titled "From Survive to Thrive: Achieving Tech Transformation for Communication Service Providers' Future" surveyed 252 telecommunication service provider executives. The study found that the technology gap is a common challenge for all telecommunications organizations, impacting their overall business results. Two-thirds of executives admitted that their companies are facing difficulties with the complexity of information systems related to the current portfolio of products and services. Additionally, one in three respondents highlighted high IT maintenance and operation costs as a central issue due to the high percentage of legacy systems occupying their overall IT infrastructure.
The study also revealed that the financial and operational costs of maintaining legacy systems are increasing every year. In fact, 84% of executives said that their companies will miss out on future growth opportunities if they don't continuously modernize their IT infrastructure. At the same time, 77% recognized that modern IT systems can streamline their IT architecture and lay the groundwork for an agile telecommunications company.
Despite the importance of modernizing IT infrastructure, few providers have made significant progress. For example, while 93% of the executives cited cloud-first infrastructure as an important element, only 26% are adopting best practices to transform their operating model. Similarly, when it comes to AI, 91% recognized its importance to the business, but only 22% have integrated it into customer and network operations.
At the center of digital transformation lies a people-centric culture. A recent study shows that only 18.7% of executives feel confident about their organization's talent in meeting emerging IT needs, while 80% agree that a culture shift is necessary. Therefore, telecom companies must prioritize skill-based, data-driven talent development.
According to Mathangi Sandilya, the Global Technology Industry Group Lead in Communications & Media at Accenture, the technology gap poses a significant challenge for telecommunications providers that can only be addressed by replacing outdated systems and building a digital core that takes advantage of the opportunities presented by AI and other new digital technologies. The study reveals that companies with a lower technology gap consistently outperform their competitors in terms of IT costs, business agility, and financial growth. Therefore, accelerating digital transformation is now imperative. Investing in modern IT systems, adopting innovative technologies such as cloud, data, and generative AI, upskilling personnel, and implementing open and interoperable technology architectures will pave the way for IT simplification, flexibility, and efficiency.
