Capgemini – The art of software, 2023

Capgemini's report highlights the increasing importance of software in today's business landscape. It states that software is a strategic capability that transforms how companies design their products and services, operate, compete, and provide value to customers. The report emphasizes that every company, regardless of industry or sector, must become a software company to remain competitive. A majority of organizations, 62 percent, believe that software gives them a competitive advantage, and almost 60 percent consider software-driven transformation a board-level topic. To keep up with the changing landscape, organizations are increasing their investments in software transformation. On average, nearly 18 percent of R&D budgets are dedicated to software-driven transformation, and 60 percent of organizations plan to increase their investment levels by 2025. Generative AI is expected to play a significant role in software transformation. The report suggests that 72 percent of organizations will use Generative AI to enhance software engineering in the next year. It also predicts that Generative AI will assist in writing one out of every five lines of code within the same timeframe. Successful software-driven transformation has the potential to significantly increase revenue. Organizations expect software-based revenue to grow to nearly 30 percent of total revenue by 2030, compared to 7 percent in 2022. Leading organizations are already benefiting from faster R&D, cost reduction, and improved customer experience through software-driven transformation.