India stands out in the global landscape, leading in average risk readiness at 35%. Among Indian business leaders, 88% rate their IT infrastructure highly, with 44% confident in its ability to manage future risks. The report highlights India’s leadership in AI adoption, with 85% of executives investing in AI and 51% reporting positive ROI—well above the global average. However, challenges remain: 27% of Indian leaders cite a shortage of skilled AI professionals as a hurdle, and 10% report gaps in data science and analytics, although this is lower than the global average of 15%.

Kyndryl’s newly released 2024 Readiness Report uncovers a notable global paradox: while 90% of business leaders consider their IT infrastructure “best-in-class,” only 39% believe it is equipped to tackle future risks. The report, built on insights from 3,200 senior leaders alongside Kyndryl’s AI-powered platform, underlines how IT modernization can provide a competitive edge, yet only 42% of global businesses currently see a positive return on their AI investments.

In today’s digital economy, executives increasingly rely on IT to mitigate risks, attract talent, and utilize advanced tools. While 94% prioritize technology modernization, Kyndryl’s data reveals that 44% of mission-critical infrastructure is reaching or has reached end-of-life, posing barriers to progress. Business leaders indicate they need support in decision-making and talent development to navigate these modernization challenges effectively.

The report’s insights into India show a country highly committed to readiness in risk management and talent. India ranks first in readiness to handle cybersecurity and resilience risks, with 40% of leaders confident in their capabilities. Additionally, 44% of executives are prepared to address skills gaps and talent deficits. Technology modernization is also a major focus, with 96% of Indian leaders listing it as a top priority and 37% actively leading modernization efforts to drive business outcomes. However, the report also highlights areas for improvement, as India ranks lower in employee training and regulatory compliance, with only 25% investing in employee development (compared to 31% globally) and just 23% focusing on enhancing compliance measures (below the global average of 29%). Moreover, regulatory challenges are a concern, as 59% of Indian business leaders believe policy changes are occurring too rapidly.

Globally, cybersecurity remains a top priority, with 65% of executives concerned about cyber-attacks and only 30% feeling equipped to manage them. Environmental and climate risks are also significant, with 59% expressing concern but only 25% confident in their resilience against these disruptions. While an accelerating regulatory landscape presents challenges, it also provides opportunities: 48% of leaders feel the pace of regulation is moving too fast, but 66% view new regulations as having a positive impact.

Despite these hurdles, businesses that embrace modernization report benefits, with 85% seeing improved efficiency, 71% noting enhanced innovation, and 60% experiencing better customer and employee experiences. However, some areas remain challenging, such as data security and compliance, which saw less impact from modernization (34%), and sustainability goals, like reduced energy use or emissions (27%).

The report also advises leaders to balance new technology with existing systems, ensuring that new investments integrate smoothly with organizational culture and goals. Lastly, addressing technical debt should be reframed as an opportunity: by investing in infrastructure upgrades and automation, businesses can reduce operational inefficiencies and unlock potential for growth. Kyndryl’s roadmap offers organizations a structured approach to confront these complexities, paving the way to enhanced readiness and resilience in the face of modern challenges.