This is according to the findings of a survey - conducted by research firm IDC for customer solutions provider Amdocs - which polled decision makers from 81 service providers in APAC, Europe, Latin America, and North America last December to January 2016.
According to the survey, 47 percent of respondents in APAC predict that their companies will take more than five years to transform. Additionally, 76 percent of the respondents said this is not fast enough, and the communication industry will be outpaced by other industries.
The survey also revealed that 33 percent of service providers in this region do not have a digital strategy in place. Eighty-five percent of the respondents are still executing digital transformation projects as stand-alone initiatives without alignment to a broader business strategy.
Andy Hicks, Research Director for Telecoms and Networking, EMEA at IDC, said: "The majority of service providers today are actively working to deploy digital technologies to improve their businesses, but this is happening without a unifying top-level vision and strategy. They are also telling us they are struggling to realign processes and retrain staff at the same time, further delaying real business outcomes."
"They may be able to keep up with other service providers, but they don't think they can keep up in the broader digital world unless they address gaps in digital strategy, skills and leadership. Our research suggests they will source professional services to bridge some of these gaps," added Hicks.
Overcoming the DX challenges
According to the survey, 67 percent of respondents believe that the telco industry in APAC has strong technology capabilities but find it difficult to implement digital transformation projects quickly.
Even though 90 percent of the respondents understood the importance of having a chief digital officer (CDO) to drive their transformation journey, only 29 percent said they had one.
To overcome challenges, service providers believe that having the right skills to create and implement digital transformation strategies is key to helping their companies to transform. Aside from that, service providers are also looking for partners to help them deploy digital transformation projects and accelerate the pace of their transformation.
"Digital transformation is a critical enabler for capturing digital age opportunities and delivering The New World of Customer Experience," said Abhay Kumar, Regional Vice President of Amdocs in APAC. "As digital transformation is made up of multiple projects and initiatives, it's clear from this research that companies in APAC fear timelines are slipping, and that they have serious concerns as to whether they have enough strategic focus and digital skills to transform fast enough. This is where a partner who brings the right digital skills, expertise, and solutions can come in to support current and new leadership and their IT and business teams to create and execute digital transformation strategies faster."
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