According to a recent survey by Gartner, only 48 percent of digital initiatives meet or exceed business outcome targets. The survey included over three thousand Chief Information Officers and technology executives and revealed that a group known as the “Digital Vanguard” achieves a significantly higher success rate, with 71 percent of their initiatives succeeding. The report highlights the importance of collaboration between Chief Information Officers and their peers in other business areas, suggesting that their fortunes are intertwined for successful digital transformation.
European organizations are projected to significantly increase their IT services spending in 2025, with a focus on harnessing the benefits of generative artificial intelligence. According to Gartner, overall IT spending in Europe is expected to reach one point two trillion dollars, marking an impressive eight point seven percent increase and the highest growth rate since the post-pandemic surge in 2021. Notably, spending on AI-related IT services is anticipated to rise by twenty-one percent, reaching ninety-four billion dollars. Globally, IT spending is set to hit five point seven four trillion dollars in 2025, reflecting a nine point three percent increase from the previous year. However, IT leaders are advised to temper their expectations, as the capabilities of current generative AI models may not meet the high hopes placed upon them.
Why do we care?
The stark contrast between the Digital Vanguard (71% success) and the broader market (48%) highlights the tangible business value of structured, well-executed digital strategies. IT service providers must position themselves as enablers for clients to achieve “Vanguard” status by fostering cross-functional collaboration and measurable outcomes.
After years of digital transformation rhetoric, some organizations may experience “initiative fatigue,” leading to resistance against further investment without clear, immediate ROI. This could dampen enthusiasm for ambitious new projects and make change management a greater challenge. Recently, Carolyn April predicted this on my live show.
Prioritize achievable generative AI use cases with measurable ROI to build trust and demonstrate value. Be transparent about limitations and actively manage client expectations. Also a potential — Offer “second-chance” services to organizations that have struggled with past digital initiatives, providing expertise in troubleshooting and optimization.