URGENT UPDATE: IT transformation is undergoing a seismic shift as businesses prepare for 2026, according to new insights from industry leaders. With CEOs and C-suite executives recognizing the critical need for change, the stakes have never been higher for IT departments to evolve culturally, operationally, and technologically.
New research from Genpact reveals that only a small fraction of the 500 CEOs surveyed are currently implementing multi-agent orchestration systems. This highlights a significant gap in IT capabilities as organizations grapple with fragmented data, legacy systems, and cultural resistance. As Daniel Burrus, founder of Burrus Research, states, many IT organizations still operate with an outdated mindset, limiting their potential for real transformation.
In an environment where rapid technological advancement is paramount, IT departments can no longer function in isolation. They must collaborate closely with other C-suite leaders to ensure that technology investments align directly with business objectives. Ken Englund, technology sector growth leader at EY Americas, emphasizes the urgency for IT to demonstrate return on investment (ROI) from AI initiatives, shifting from traditional metrics to a broader understanding of business impact.
As organizations navigate increasing technical complexity, strong architectural frameworks are essential. Sergio de la Fe, enterprise digital leader at RSM US, highlights that many IT departments have been caught off guard by inadequate access controls and outdated data architecture. These deficiencies can severely hinder success in implementing advanced technologies like agentic AI.
Recent discussions among industry leaders reveal that the operational focus is shifting towards automation and efficiency. Michael Corrigan, CIO at World Insurance Associates, notes a pressing desire from business leaders to leverage AI for process improvement and value generation. “They want to discuss how AI can streamline operations and enhance productivity,” he stated.
Sanjeev Vohra, chief technology and innovation officer at Genpact, points out that top-performing IT organizations are taking a disciplined approach to these challenges. He asserts that future success hinges on creating modular, open architectures that can adapt to the evolving demands of the business landscape.
To gauge whether an IT transformation is on the right track, organizations must focus on delivering tangible business value. At Genpact, the IT department tracks modernization efforts weekly, ensuring ongoing alignment with strategic goals. “We are creating an innovation layer called Scout to automate workflows and enhance efficiency,” Vohra explained.
Experts suggest that smaller, incremental transformations enable IT departments to demonstrate quick wins while maintaining agility. As Khaliq Khan, global lead of the design-led transformation practice at Kyndryl Vital, notes, this approach allows for real-time evaluation of project outcomes.
Indicators that an organization is lagging in IT transformation include insufficient budget allocations for growth, excessive technology debt, and a loss of market share due to subpar technological capabilities. According to de la Fe, “Processes that merely survive rather than thrive signal the urgent need for transformation.”
As businesses increasingly prioritize IT-business alignment, the role of CIOs is evolving rapidly. Leadership is now expected to integrate technology strategies with broader business objectives, ensuring that IT delivers measurable impact. The pressure is mounting, with boards demanding improved efficiency and alignment with business KPIs.
In a world where AI’s promise amplifies expectations, CIOs must manage these demands realistically while investing strategically in next-gen technologies. Recent surveys indicate a significant rise in IT and AI budgets, but as Englund cautions, “The proof lies in how these budgets are utilized to meet business needs.”
As we approach 2026, the imperative for IT departments is clear: deepen partnerships with business units and rethink value delivery. This transformation journey requires a cohesive alignment of budgets, personnel, processes, and technology to remain competitive in an ever-evolving landscape.
Industry leaders agree that the future of IT transformation is not just about adopting new technologies but fostering a mindset shift that integrates IT into the core of business strategy. As Vohra aptly puts it, “The engagement model between business and IT will become more critical for future success.”
Stay tuned as the landscape of IT transformation continues to evolve, and organizations strive to meet the challenges of tomorrow.
