DXC Technology Study Finds 35,000 New Technology Jobs Will Be Needed to Meet the Growth of Digital Transformation in Australia
News Release -- May 07, 2019
SYDNEY, Australia, 7 May 2019 — A study of business leaders by DXC Technology (NYSE: DXC) and emerging technology analyst Telsyte has revealed that 35,000 new IT jobs will be needed in 2019, with almost one in five Australian organisations creating new internal roles to meet the growth of digital transformation.
With roles such as data architect and business intelligence analyst in huge demand, this figure rises to over a third for those in banking and finance, administration, support and professional services. Further, more than one in five organisations are set to create artificial intelligence (AI) specific roles. Almost half of the organisations surveyed see AI and employees working together to complete tasks and more jobs being created (57%) than taken away by digital transformation.
The study, “Beyond Disruption: Australian organisations race to digital transformation success,” provides new insights into the digital challenges and opportunities of 447 Australian organisations.
The study revealed that whilst 41% of Australian organisations now see an organisation-wide digital strategy as the dominant approach for managing digital transformation, almost the same proportion are still adopting a siloed business-unit approach.
“Rolling out a digital strategy organisation-wide is now considered a superior approach by the majority of organisations as it best places companies to fend off competitors, innovate and deliver long term outcomes,” said Seelan Nayagam, managing director for DXC in Australia and New Zealand.
While most organisations start their digital journeys as processes of modernising the workplace and workforce, the focus of many digital transformations in Australia has now turned to the customer experience. More than 60% of large organisations cited customer experience as a top five business priority when it comes to implementing a digital strategy. Nearly two-thirds (61%) of organisations with digital strategies stated they have increased the value they provide for their customers.
The study also showed that on average, organisations believe they have only 2.2 years to integrate digital initiatives to mitigate digital disruption. However, this level of urgency is not reflected in how quickly firms are adapting; more than two in three are still taking reactive approaches to digital disruption, notably small and midsized organisations. Large organisations, the study revealed, are twice as aggressive in trying to digitally disrupt their industries and partnering with others to disrupt their markets.
In considering which technologies to employ for digital transformation, two-thirds of respondents indicated they are already spending or considering investments in 5G and the cellular internet of things (IoT). More than one-third of organisations fear “uberisation”, or the use of technology to enable peer-to-peer transactions between clients and providers of services, often bypassing the traditional role of corporations.* This approach seems to have had a greater effect on certain industries, including wholesale providers, services companies and government organisations, with over half of the organisations surveyed looking at leapfrogging competitors with radical innovations.
In assessing who in an organisation leads the digital transformation strategy, the study showed one in three CEOs are now involved in leading digital transformation strategies, confirming the strategic importance of top leadership in driving change. However, digital literacy levels among CEOs and upper management remain an issue, with 30% to 40% of CEOs not considered digitally literate. The study suggests that the rise of millennial CEOs is likely to increase literacy levels in organisations, and generational changes will be a feature of organisations that are looking for cultural change.
Despite over a quarter (26%) of organisations saying a lack of employee engagement is a likely reason for digital transformation failure, fewer than half are speaking with their employees about digital transformation, disruption or changes due to AI or automation. The exception seems to be when firms take organisation-wide approaches to digital transformation — where more than three-quarters are providing employees with necessary information.
“Less than one-third of organisations today are providing their employees with digital transformation training, indicating more needs to be done to take employees on the transformation journey. To achieve success, employee education must be the cornerstone of any digital transformation programme and not regarded as an afterthought,” said Nayagam.
*https://en.wikipedia.org/wiki/Uberisation
About Telsyte
Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC Technology. Visit www.telsyte.com.au for more information.
About DXC Technology
As the world’s leading independent, end-to-end IT services company, DXC Technology (NYSE: DXC) leads digital transformations for clients by modernizing and integrating their mainstream IT, and by deploying digital solutions at scale to produce better business outcomes. The company’s technology independence, global talent, and extensive partner network enable 6,000 private and public-sector clients in 70 countries to thrive on change. DXC is a recognized leader in corporate responsibility. For more information, visit dxc.technology and explore thrive.dxc.technology, DXC’s digital destination for changemakers and innovators.
For further information, contact:
- Foad Fadaghi, managing director, Telsyte, +61 2 9235 5851, ffadaghi@telsyte.com.au
- Sheila Dhillon, director, Corporate Communications, DXC Technology, sdhillon@dxc.com