Kyndryl has released the 2024 Kyndryl Readiness Report, which explores the paradox of why 92 per cent of executives in the United Arab Emirates (UAE) and Saudi Arabia believe their IT infrastructure is best-in-class, surpassing the global average of 90 per cent, yet only 43 per cent of them think it’s ready to manage future risks.
The report also shows how IT modernisation is helping companies gain a competitive edge, even as just 39 per cent of businesses in the UAE and Saudi currently see positive returns 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 93 per cent of leaders in the UAE and Saudi Arabia say technology modernisation is a high priority for their companies, data from Kyndryl shows that 59 per cent of mission-critical IT infrastructure is approaching or at end-of-life, increasing vulnerability and raising barriers to modernisation.
In terms of concerns, cybersecurity tops the list of business concerns: 57 per cent of business leaders in UAE and Saudi are worried about cyber-attacks, and only 34 per cent feel ready to manage them. Similarly, 68 per cent of business leaders in UAE and Saudi express concern over climate and environmental disruptions, yet just 26 per cent believe their systems can effectively respond.
Business leaders in the UAE and Saudi Arabia say upgrading IT is top way to manage risk with top actions being taken to mitigate risk include upgrading IT infrastructure (41 per cent), Implementing robust cybersecurity measures (40 per cent) and enhancing regulatory compliance efforts (36 per cent).
“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 organisation.”
Additional highlights:
- AI ROI elusive: While 77 per cent of businesses in UAE and Saudi are investing in traditional AI and machine learning, only 39 per cent see a positive return on investment. The biggest barriers to AI adoption in the UAE and Saudi Arabia remain data privacy concerns, uncertain ROI and compliance challenges.
- Sustainability tops the agenda: 91 per cent of executives in UAE and Saudi Arabia prioritise sustainability when implementing technology modernisation initiatives, while 60 per cent cite it as a challenge for their modernisation efforts.
“Leaders in the UAE and Saudi Arabia are showing exceptional confidence in their IT infrastructure, with 92 per cent believing it is best-in-class. This positive outlook is fueling a strong focus on modernisation, with 93 per cent prioritising technology upgrades to stay ahead of future challenges.
At Kyndryl, we are committed to supporting our customers through every phase of their transformation journeys, helping them meet their growth plans and ensuring they are resilient in a rapidly evolving digital landscape. The opportunities are vast—from enhancing cybersecurity to leveraging AI for data-driven decision-making and advancing sustainability initiatives. We are here to seize these opportunities alongside our customers and help shape a future-ready IT ecosystem,” said Pieter Bil, Senior Vice President and Managing Director of Kyndryl Middle East and Africa.
The Kyndryl Readiness Report combines feedback from 3,200 senior decision-makers, including some from UAE and Saudi Arabia, with insights from Kyndryl Bridge, the Company’s AI-powered digital business platform, to illustrate global business challenges and opportunities across markets and industries.
To read the full report, visit Kyndryl’s 2024 Readiness Report.
