# European businesses are advancing their digital transformation, according to CenturyLink study conducted by 451 Research Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-10-27 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: European Companies Embracing Digital Transformation Strategies Meta Description: Discover how European companies are prioritising digital transformation to reduce costs, enhance customer experience, and overcome barriers to a successful Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/european-businesses-are-advancing-their-digital-transformation-according-to-centurylink-study-conducted-by-451-researchhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd271017-26-1736843340988-compressed.jpg) _Almost half of companies polled have implemented formal digital transformation strategies to reduce operational costs and improve customer experience_ [CenturyLink, Inc.](http://www.centurylink.com) (NYSE: CTL) today announced the results of a commissioned study on the digital transformation of European enterprises. Conducted by 451 Research, the study provides insight into how, why and at what pace organisations are preparing for their digital future. The survey – which polled more than 400 executives across Europe – found that more than half (52 percent) of companies are increasing IT spending levels within the next year to achieve the significant benefits of digital transformation. In addition, the majority of organisations are making progress with planning and implementing their [digital transformation](https://www.financedigest.com/digital-transformation-for-the-world-of-finance-the-rise-in-collaboration-tools-and-saas-applications.html "Digital transformation for the world of finance: The rise in collaboration tools and SaaS applications ") projects – almost half (47 percent) have a formal strategy and are actively digitising business processes, and 25 percent have started on siloed projects without an overarching strategy. “In a global business economy dominated by disruption, innovation and [cyber threats](https://www.financedigest.com/how-are-rising-cyber-threats-boosting-demand-for-public-safety-software.html "How are Rising Cyber Threats Boosting Demand for Public Safety Software"), speed to market is of the essence,” said Richard Warley, CenturyLink managing director, EMEA. “While it’s encouraging to see the majority of enterprises in Europe increasing their investment in digital transformation, the associated complexities can result in numerous roadblocks. Moving to a superior network and employing agile cloud [technologies are foundational elements to simplifying the transformation](https://www.financedigest.com/how-distributed-ledger-technologies-are-transforming-esg-reporting-for-financial-intermediaries.html "How Distributed Ledger Technologies are transforming ESG reporting for Financial Intermediaries") process.” “Digital [transformation](https://www.financedigest.com/why-digital-transformation-in-finance-is-crucial-for-post-lockdown-success.html "Why digital transformation in finance is crucial for post lockdown success") programs in Europe are now being viewed as strategic, long-term initiatives and typically receive the support of top-level executives,” said Nick Patience, founder & research vice president, software at 451 Research. “A critical aspect of these transformation projects is entrusting some of the fundamentals to external service providers. More than 90 percent of companies surveyed are using or expect to use a third-party transformation partner. This enables business leaders to refocus internal resources on developing new services and applications to support innovative business initiatives.” The study also found nearly 40 percent of respondents expect digital transformation to cause ‘major disruption’ over the next three years. The top factors driving digital transformation are reducing operational costs (51 percent), improving customer experience (41 percent), and creating new [services or revenue](https://www.financedigest.com/sheet-metal-fabrication-services-market-to-surge-at-a-robust-pace-in-terms-of-revenue-over-2026.html "Sheet Metal Fabrication Services Market to Surge at a Robust Pace In Terms Of Revenue Over 2026") streams (37 percent). **The Pace of Transformation** Despite more companies focusing on digital transformation, they acknowledge it will take significant time to successfully complete these projects. The majority (55 percent) of respondents estimate it will take three to six [years to achieve company-wide digital transformation](https://www.financedigest.com/signal-transformer-market-one-the-most-booming-industry-in-upcoming-years-due-to-global-demand-in-industry-by-2027.html "Signal Transformer Market| One the Most Booming Industry in Upcoming Years Due to Global Demand in Industry by 2027"), largely due to how long it takes to overcome business and IT complexities. **[Barriers to a Successful](https://www.financedigest.com/why-start-ups-fail-5-barriers-to-business-success-and-how-to-overcome-them.html "Why start-ups fail: 5 barriers to business success and how to overcome them") Transformation** The primary barriers respondents identified are inflexible IT systems and lack of operational agility (36 percent), overcoming organisational silos/outdated work practices (35 percent), and inability to migrate [legacy IT and business applications to the cloud](https://www.financedigest.com/achieving-a-smooth-transition-from-legacy-infrastructure-to-hybrid-cloud.html "Achieving a Smooth Transition from Legacy Infrastructure to Hybrid Cloud") (33 percent). **The [Growing Importance](https://www.financedigest.com/insurance-products-growing-in-importance-in-2021-and-beyond.html "Insurance products growing in importance in 2021 and beyond") of Cloud** The study confirmed the increased importance of cloud, with 57 percent of respondents rating [cloud services](http://www.centurylink.com/business/enterprise/cloud.html?_ga=2.201001576.798168890.1502974135-883150477.1502627278) as a ‘very important’ enabler for digital transformation and 29 percent rating it as ‘important’. **Choosing the Right Partner** In addition to long-term commitment, choosing the right partner is [critical to achieving success](https://www.financedigest.com/five-critical-tips-to-create-a-successful-start-up.html "Five Critical Tips To Create A Successful Start-up"). Forty-three percent of companies are using or expect to need an IT services (including communications services) provider in support of their digital transformation programs, and 38 percent use or expect to use a [cloud service](https://www.financedigest.com/uk-to-examine-cloud-services-dominated-by-amazon-microsoft-and-google.html "UK to examine cloud services dominated by Amazon, Microsoft and Google") provider, the study found. **To Download the Study** Commissioned by CenturyLink, [the study](http://www.centurylink.co.uk/assets/report/digital-transformation-strategies.html) was conducted by 451 Research in the first quarter of 2017, including interviews with more than 400 executives at leading companies in the financial services industry, retail sectors and public sector agencies across the UK, Austria, Germany and Switzerland. In all, more than 1,400 executives were polled from global enterprises of various sizes in [North America](https://www.financedigest.com/north-america-residential-wood-flooring-market-expansive-coverage-on-the-latest-trends-and-developments-in-the-market.html "North America Residential Wood Flooring Market – Expansive Coverage on the Latest Trends and Developments in the Market"), Europe and Asia Pacific. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---