Accelerated demand for cloud native and data services
The shift to cloud native and data-driven technologies continues to be at the core of customers’ drive for agility, productivity and competitiveness. Cloud continues to be the foundation for business agility and data at the core of competitive products and operations. Demand for cloud native and data services, including Artificial Intelligence, is expected to remain high and to result in over 10% market growth in this area.
In our view, Generative AI (GenAI) will provide diverse opportunities for enhancing productivity and competitiveness both among its customers and in its own operations. It is expected to have profound impact both in driving productivity and bringing enhanced software products and services to customers. To accelerate implementation, we are actively working to discover and concretize the benefits of GenAI by running efficient use cases across industries together with customers and expanding its network of partners.
At the same time, customers' focus will be on user experience, driving new business opportunities and growth. Customers continue to emphasize data sovereignty, security and business continuity as they adopt cloud technologies, with multi-cloud becoming a default. In the market with cautious customer spending, outsourcing demand with embedded transformation to cloud is expected to continue, resulting in volume decline of up to 10% over time in traditional services. Service providers will be affected by customer demands for price reductions, limiting their ability to increase prices and margins in the short term.
