New Deltek Clarity Research Reveals Architecture and Engineering Firms in EMEA and APAC Identify Digital Transformation as Key to Maintaining Market Share
- The Deltek Clarity Architecture and Engineering report reveals that as companies face staffing challenges and tighter margins, digital transformation will be key to business success.
- However, despite digital advancements, businesses are more limited in their confidence to reach digital maturity in the next five years.
- A global skills shortage is also leading companies to invest in employee development and employee wellbeing.
LONDON, May 16, 2022 /PRNewswire/ — A new report from DeltekComment – the leading global provider of software and solutions for project-based businesses, found that while the architecture and engineering (A&E) industry sees digital transformation as important, business priorities have shifted . In this year’s Deltek Clarity Architecture & Engineering study for EMEA and APAC, more than half (55%) of respondents say they will lose market share within two years without further progress in transformation digital. Despite this, 29% of companies say their digital transformation maturity will be “advanced” in five years, compared to 40% in the previous year’s report, suggesting companies may not be realizing their digital ambitions as quickly as they predicted it a year ago. .
The study, which helps A&E companies benchmark their performance, identify market conditions and understand industry trends, found business leaders could focus more on what is essential and what is possible in their business. Nearly 65% of business leaders say the pandemic has exposed weaknesses in their operating model. Contrary to last year’s findings, companies are now looking at digital transformation in a new context and how they can better leverage technology to run their business. This impacts where companies plan to invest strategically. Due to rapid changes over the past two years, nearly half of companies plan to invest in training staff on technology trends.
Adrian Mallesonhead of economic research and analysis at RIBA, comments on the notion of digital transformation in A&E in 2022: “Transforming suggests that there is a beginning, a middle and an end, which I think more and more many people consider not to be the case. process, basically by adapting and engaging with new tools.”
Impact of the talent crisis on businesses
Globally, talent shortages are also having a huge impact on the entire industry. And, as shown in this year’s study, the impact is felt across all areas of the business. Not only did 43% of respondents identify staffing shortages as a top challenge for project management, but nearly a third identified finding and retaining staff as a top challenge for finance leaders. Finding top IT talent was also identified as a top challenge by 34% of respondents, showing that the talent crisis is not limited to project engineers and architects.
Developing talent is not an easy task. Nearly 30% of companies identified developing the right knowledge and skills as a key challenge, yet only a third see investing in workforce skills as a significant growth opportunity. As businesses face rising costs, increased competition to retain their best employees, and an evolving workplace model, businesses will need to think creatively and digitally about how to close the gaps in talents.
Additionally, many say hybrid working gives them the opportunity to partner internationally and enter new markets, with 76% saying they are in a better position to enter new markets or segments than they weren’t 12 months ago.
The impact of technology on growth
Although staffing can be a challenge, companies are optimistic about their opportunities for growth. Nearly a third of companies are focused on geographic expansion over the next three years and 76% say they are better positioned to enter new markets than they were 12 months ago. Many companies report that hybrid working provides them with international partnership opportunities that they could not have done just a few years ago.
Businesses also report that technology will play a critical role in their growth strategy and their ability to compete in the markets they serve – 59% of businesses say they have lost potential customers to competitors with more advanced technologies and 80% of businesses say investing in technology to improve operations will help them win more business.
Increased confidence in project and business performance
As companies grapple with rising labor costs and overall cost of doing business, companies are focusing on closer tracking of key performance indicators. Globally, 65% of companies say they are confident in the accuracy of their overall project performance data, up from 59% last year. The biggest increase is confidence in true project cost reporting (from 52% to 65%), which suggests data insights are improving as the industry becomes more digital.
Companies also reported more projects on track from a planning and budgeting perspective compared to the previous year, but there is still work to be done to put projects that are off track back on track. way to meet customer expectations and profitability objectives.
In terms of competitiveness and protecting earnings, the report also revealed that over the next three years, UK businesses will focus on better managing growth (38%), better forecasting (31%) and improving business processes (31%) in finance. Sustainability was also seen as a priority for attracting customers and talent, with 79% of UK businesses saying having a formal sustainability policy is crucial to staying competitive.
neil davidsonRegional Vice President of Deltek, summarizes: “This year’s report paints a very different picture of how companies in EMEA and APAC were approaching digital transformation before and during the pandemic. It suggests that it There has been a shift in priorities, as businesses shift from survival mode to more strategic planning, they now have a clearer picture of what the future of their business looks like. While there is had a more restrained attitude towards digital transformation this year, this is the result of an accelerated change over the past two years probably feel less able to reach an advanced stage of digital maturity as it We could see a slight dip in digital investments as companies reassess the technologies they need and can afford to invest in sustainably. corn. What is clear though, 2022 will be the year A&E companies seek to upskill their staff in the wake of the global talent crunch, with internal training seen as a priority.”
Download the full Deltek Clarity Architecture and Engineering Study for EMEA and APAC here.
For the 3rd Annual Deltek Clarity A&E Industry Study for EMEA and APAC, Deltek surveyed 600 decision makers of all company sizes (30% from 20-50 employees, 30% from 51-250, 30% from 251-500, 10% of over 500) to examine technology trends, attitudes towards digital transformation, current and future challenges, project performance, financial benchmarking and KPIs. The online survey was conducted between December 2021 and February 2022with financial metrics representing 2021 financial performance.
Better software means better projects. Deltek is the world’s leading provider of enterprise software and information solutions for project-based businesses. More than 30,000 organizations and millions of users in more than 80 countries around the world trust Deltek for superior levels of project intelligence, management and collaboration. Our industry-focused expertise fuels project success by helping companies achieve performance that maximizes productivity and revenue. Learn more about www.deltek.com.
Logo – https://mma.prnewswire.com/media/1010738/Deltek_Logo.jpg