IT Transformation in 2026: Urgent Changes Required NOW

URGENT UPDATE: Major shifts in IT transformation are on the horizon as enterprises prepare for 2026. Experts warn that organizations must act NOW to align their IT strategies with evolving business needs or risk falling behind.

According to new research from Genpact, only a small fraction of the 500 CEOs and C-suite leaders surveyed are actively implementing multi-agent orchestration, a critical aspect of modern IT transformation. This revelation highlights the significant gap between current capabilities and future demands, with many organizations still grappling with fragmented data, legacy systems, and cultural resistance.

Daniel Burrus, founder of Burrus Research, emphasizes that IT organizations that have successfully transformed are still outliers. “Many still operate with an ‘old mindset’ that limits real transformation,” he stated. Without immediate changes, IT departments are set to struggle in an increasingly complex technological landscape.

The pressures are mounting. As businesses demand tangible ROI from AI investments, IT leaders must adapt quickly. Ken Englund, technology sector growth leader at EY Americas, noted that IT organizations will need to take ownership of business case execution, KPI measurement, and overall value delivery. “The expectations for these transformation programs have probably doubled or tripled in the last couple of years,” he said.

Complexity in technology is escalating. Back-end systems are becoming more intricate, demanding robust architecture frameworks and faster design cycles. Sergio de la Fe, enterprise digital leader at RSM US, highlighted that poor access controls and weak data governance have plagued many IT organizations. “Many have taken the easy way,” he remarked, referring to reliance on cloud solutions that lead to fragmented data environments.

As organizations face these challenges, there is a pressing need for a unified approach. Michael Corrigan, CIO at World Insurance Associates, reports that his IT team is prioritizing automation and operational efficiency but now focuses on agentic AI to enhance business processes. “Leaders want to talk about how AI can improve their processes,” he explained.

The urgency to transform is palpable. Sanjeev Vohra, chief technology and innovation officer at Genpact, advocates for a disciplined approach to technology challenges. “Applications are becoming more heterogeneous,” he said, urging organizations to adopt modular and open architectures while maintaining core applications.

To effectively measure their progress, IT departments must establish clear metrics for success. At Genpact, the IT team tracks modernization and technology adoption weekly, a practice that could serve as a model for other organizations. “We are moving our systems of record to next-generation systems,” Vohra explained, emphasizing the importance of innovation in their transformation efforts.

Experts advise that incremental changes can lead to significant improvements. Khaliq Khan from Kyndryl Vital recommends smaller, proof-of-concept transformations to maintain agility and ensure alignment with business goals.

As the alignment between IT and business operations strengthens, the need for IT departments to embrace business acumen becomes critical. Vohra noted that without a strong connection to business functions, IT cannot deliver the expected impact. “The integration of IT and business functions is greater than ever,” he stated.

The message is clear: organizations must act decisively. Failing to meet the evolving demands of the market can be a telltale sign that transformation is essential. RSM’s de la Fe pointed out that excessive tech debt and a lack of budget for future growth are significant indicators of an urgent need for change.

As IT departments prepare for 2026, the call to action is loud and clear. The future of IT transformation demands a strategic partnership with business leaders, a rethinking of value delivery, and a commitment to innovative technologies. Organizations that fail to adapt may find themselves left behind in a rapidly changing digital landscape.

Stay tuned for more updates on this critical topic as businesses strive to navigate the complexities of IT transformation.