URGENT UPDATE: The landscape of IT transformation is rapidly evolving, and experts warn that by 2026, organizations must adapt or risk falling behind. New insights from a recent survey by Genpact reveal that only a small percentage of 500 CEOs and C-suite leaders are currently implementing critical multi-agent orchestration technologies.
As the pace of technological innovation accelerates, IT departments face mounting pressure to transform culturally, operationally, and technologically. The stakes are higher than ever, with fragmented data and outdated systems posing significant challenges. Experts like Daniel Burrus, founder of Burrus Research, emphasize that many IT organizations still cling to outdated mindsets that hinder true transformation. “It’ll be changed, but that’s not good enough,” Burrus stated.
The urgency for change is reflected in the evolving role of the CIO. Ken Englund, technology sector growth leader at EY Americas, underscores the necessity for IT to align closely with business goals. “We need IT organizations to own the business case, execution, and KPI measurement,” he said, stressing that traditional IT metrics are no longer sufficient.
The complexities of modern IT systems are increasingly daunting. Sergio de la Fe, enterprise digital leader at RSM US, warns that many organizations are struggling with poor data governance and outdated architecture. This can derail progress, leaving companies unable to leverage their data effectively. “Organizations may technically own their data, but it isn’t accessible or usable,” de la Fe explained.
In a bid to address these challenges, leaders like Michael Corrigan, CIO at World Insurance Associates, have shifted focus towards automation and operational efficiency. “AI is on everyone’s mind—leaders want to know how it can enhance their processes and deliver value,” Corrigan said.
Meanwhile, Sanjeev Vohra, chief technology and innovation officer at Genpact, highlights the importance of adopting a disciplined approach to technology challenges. “Advanced IT organizations are pivoting towards modular and open architectures to remain responsive to business demands,” Vohra noted.
As businesses scramble to keep pace, understanding when IT transformation is on the right track is crucial. Khaliq Khan, global lead at Kyndryl Vital, advocates for incremental transformations that provide quick proof points, enabling organizations to adapt swiftly as needs evolve.
The pressures for change are clear. According to the latest data, IT and AI budgets are on the rise, indicating a shift in investment priorities. However, Englund cautions that mere activity does not equate to progress. “We need to measure performance and value captured,” he said, emphasizing that organizations must allocate 10% to 15% of their budget toward next-generation technology enablement.
Failure to meet business needs is a glaring indicator of an IT organization in dire need of transformation. De la Fe states that excessive tech debt and inadequate budgets are red flags signaling that a change is necessary. “I’m on the lookout for processes and groups that are just surviving,” he said.
As the IT landscape evolves, the relationship between business and IT will become increasingly critical. Vohra asserts that achieving alignment between IT and business functions is paramount for success. “Without this integration, IT cannot deliver the expected business impact,” he warned.
In conclusion, the urgency for IT transformation is palpable. Organizations must not only rethink how they deliver value but also deepen their partnerships across the business landscape. With the clock ticking towards 2026, the pressure to innovate and adapt is more pressing than ever. As Burrus aptly put it, effective transformation requires grounding in “hard trends” and tying them to actionable opportunities. The time to act is now.
