Friday, February 23, 2024
-Advertisement-
Reimagining Public Sector Analytics
Reimagining Public Sector Analytics
HomeNewsEnterprise ITSoftware-based revenues to increase from 7% in 2022 to 29% by 2030: Capgemini

Software-based revenues to increase from 7% in 2022 to 29% by 2030: Capgemini

Follow Tech Observer on Google News

The software-based revenues for organisations will increase from 7% in 2022 to 29% by 2030, said an industry report by Capgemini Research Institute.

Google News

The software-based revenues for organisations will increase from 7% in 2022 to 29% by 2030, said an industry report by Research Institute. “The Art of Software: the new route to value creation across industries,” predicts a significant shift in the role of software in business.

The report said that there is a growing trend among companies redefining themselves as software-focused, moving away from traditional hardware-centric models. Currently, 25% of businesses categorise themselves as software companies, with an additional 32% planning a similar transition within the next three to five years.

According to Capgemini, this shift is increasingly recognised as strategically important at the highest levels of business management.

Financial projections within the report suggest significant growth across multiple industries, driven by this software-centric approach. Sectors such as telecommunications, automotive, banking, insurance, and life sciences are expected to see considerable revenue increases, with telecommunications leading the way.

The research indicates that a substantial portion of current research and development (R&D) budgets is being directed towards software-driven initiatives, a trend that is expected to continue.

is identified as a key factor in the evolution of . The report suggests that these AI tools could significantly streamline the software development process, thereby enhancing efficiency and productivity. This development points to an evolving role for AI in supporting and augmenting human capabilities in software engineering.

However, the report also notes several challenges in fully adopting a software-centric model. Many organisations are in the early stages of this transformation, with a minority having fully scaled their software-driven initiatives. Issues such as interoperability and the transition from legacy systems are highlighted as potential hurdles.

The importance of talent development is emphasised in the context of this shift towards a software-centric business model. As demand for software solutions grows, so does the need for skills in areas such as cybersecurity, AI, and cloud technologies. Addressing this skills shortage is crucial for businesses to fully capitalise on their software-focused strategies.

“Organisations require a mindset shift if they're to differentiate, innovate and remain competitive. Thinking must move away from using digital technologies as an add-on, or tool to fix crinkles and smooth edges. Instead, leaders must view software as a key strategic asset which can unlock a myriad of benefits and establish competitive differentiation,” said William Rozé, CEO, Capgemini Engineering and Member of Capgemini's Group Executive Board.

“But to achieve software excellence and the gains that it has to offer – organisations will need to think holistically: from striking up strategic partnerships where necessary, to defining a clear transformational roadmap to ensure the architecture that underpins it is robust, sustainable, and scalable. Generative AI poses significant potential here – with the ability to vastly accelerate all endeavours,” Rozé added.

Get the day's headlines from Tech Observer straight in your inbox

By subscribing you agree to our Privacy Policy, T&C and consent to receive newsletters and other important communications.
Sanjay Singh
Sanjay Singh
Sanjay Singh covers startups, consumer electronics and telecom for TechObserver.in
- Advertisement -
Reimagining Public Sector Analytics
Reimagining Public Sector Analytics
- Advertisement -Veeam
- Advertisement -Reimagining Public Sector Analytics
- Advertisement -ESDS SAP Hana

Subscribe to our Newsletter

83000+ Industry Leaders read it everyday

By subscribing you agree to our Privacy Policy, T&C and consent to receive newsletters and other important communications.
- Advertisement -

HFCL to establish Rs 144 crore optical fiber cable plant in Poland

For this purpose, HFCL will create a new stepdown subsidiary under HFCL B.V., its wholly-owned subsidiary in the Netherlands.

RELATED ARTICLES