URGENT UPDATE: New insights into the future of IT transformation for 2026 have just been revealed, highlighting the critical need for businesses to rethink their IT strategies NOW. With technology innovation accelerating, organizations must adapt rapidly to avoid being left behind.
Recent research from Genpact indicates that while enterprises have prioritized digital transformation, many still lag in IT-specific advancements. A mere fraction of the surveyed 500 CEOs and C-suite leaders are implementing multi-agent orchestration—an essential strategy for future success. The clock is ticking, and IT departments must act decisively to stay relevant.
In today’s fast-paced business environment, IT organizations cannot afford to operate in isolation. Their integration with other corporate functions is more crucial than ever. Daniel Burrus, founder of Burrus Research, stated, “IT organizations that have successfully transformed so far remain outliers. Many still operate with an ‘old mindset’ that limits real transformation.” As of now, companies face fragmented data, cultural resistance, and outdated systems—all symptoms of an urgent need for transformation.
The stakes are high. Ken Englund, technology sector growth leader at EY Americas, emphasizes that IT must now better understand business goals and demonstrate ROI from AI initiatives. “We will look for IT organizations to own a lot of the business case, execution, and KPI measurement—well beyond traditional metrics,” Englund noted.
Compounding the challenge, technical complexity is on the rise. Sergio de la Fe, enterprise digital leader at RSM US, warns that many IT groups have been caught off guard by poor access controls and outdated data governance. “Organizations may technically own their data, but it isn’t architected in a manner where they can access it as needed,” he said.
Meanwhile, Michael Corrigan, CIO at World Insurance Associates, reports that his organization has shifted focus to automation and operational efficiency, now spotlighting agentic AI as a top priority. “Business leaders want to know how AI can enhance processes and drive value,” Corrigan revealed.
As organizations gear up for 2026, Sanjeev Vohra, chief technology and innovation officer at Genpact, advocates for a modular and open architecture for IT systems. “The most advanced IT organizations are managing these tech challenges with greater discipline,” he said.
To gauge progress, companies like Genpact track modernization efforts weekly, aiming for tangible improvements in business value. “We are moving our systems of record to next-generation systems and creating an innovation layer,” Vohra explained. This commitment to innovation is vital as businesses seek to stay ahead of emerging trends.
Incremental transformations can also pave the way for agility and quicker proof points. Khaliq Khan, global lead of the design-led transformation practice at Kyndryl Vital, supports this approach, stating that smaller steps allow organizations to evaluate and adapt as they progress.
However, not all organizations are on the right track. According to de la Fe, signs of necessary transformation include an inability to invest in growth, excessive tech debt, and declining market share. “I look for processes that are just surviving,” he said. Identifying these indicators is crucial for driving successful IT transformation.
As IT departments evolve, the gap between IT and business functions narrows. Vohra emphasizes that stronger alignment is essential for delivering expected business impact. CIOs face mounting pressure from senior leadership to improve efficiency and demonstrate value through newly defined KPIs.
The urgency for IT transformation could not be clearer. With AI amplifying expectations and a growing demand for accountability, IT organizations must not only adapt but also anticipate future challenges. As EY’s Englund points out, “The expectations for these transformation programs have probably doubled or tripled in the last couple of years.”
For organizations aiming for success in 2026, aligning budgets, people, and technology across departments is non-negotiable. As industry leaders gather insights from conferences and peer discussions, they validate their transformation strategies and push boundaries.
The message is clear: IT transformation must be proactive, not reactive. Organizations that fail to act may risk losing their competitive edge. As businesses prepare for the future, the time to rethink IT strategies and embrace change is NOW.
