Majority of UAE businesses embrace technology transformation

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New research from Rackspace Technology reveals less than a fifth of UAE organizations are not receptive to using new technologies to improve the customer experience

Dubai, United Arab Emirates: Customer experience (CX) is a top priority for most UAE businesses (62%), new research from Rackspace Technology® (NASDAQ: RXT) shows. The study revealed much greater understanding amongst UAE business leaders to improve CX than in most other countries surveyed.

Rackspace Technology, a leading end-to-end multicloud technology solutions company, today launched the ‘How Applications Impact Customer Experience’ report. The study found that UAE business leaders were very receptive to adopting new ways of using technology to improve customer experience. In fact, only 16% reported their organization is not receptive to new ways of using technology to improve CX.

One contributing factor for this positive outlook is that 83% of UAE IT leaders believe their non-tech C-suite executives fully understand the bottom-line benefits of applications. Only a fifth (20%) reporting their organization is very or highly resistant to change regarding technology. In addition, more than half (54%) of UAE respondents said it takes only weeks to reach a consensus before changes to improve CX are agreed upon.

IT leaders agree app modernization is worth fighting for

There’s broad consensus among UAE IT leaders that modernizing applications to improve their CX is worth the investment, Rackspace Technology’s research shows. Over three quarters (78%) of UAE IT leaders said that applications have a high impact on improving CX, and more than three in five (69%) would invest in purchasing or replacing an app for this reason.

This is perhaps unsurprising given that IT leaders report that, as a result of delaying modernizing applications, 57% failed to meet new regulations, nearly half (46%) reported reduced levels of customer service, while more than a third (33%) experienced a cost to the ultimate bottom-line due.

Further to these consequences, three-quarters of UAE organizations believe business revenue (100%) will be impacted if they fail to modernize legacy applications in the next two to three years.

Working with technology partners to overcome the fears of app modernization

While the research found that four-fifths (85%) of UAE businesses are currently modernizing less than 50% of their applications, IT leaders can look forward to rapid progress. A large majority (94%) of UAE IT leaders said the appreciation of the value of applications to their business or industry had grown in the past five years.

To help overcome the fear and complexity around application modernization, a half (50%) of UAE businesses are turning to external partners for support, with a proven ability to deliver modernization to the cloud and microservices cited as the most crucial consideration when choosing a partner (32%).

Mahesh Desai, Chief Relationship Officer, EMEA at Rackspace Technology, comments: “CX really is the holy grail for companies, particularly with the rapid adoption of digital services over the past 12 months. Investing in and improving CX with new technology is now the bare minimum that organizations need to do to keep up with the competition.

“That said, it’s understandable that businesses are cautious. With so much at stake and with so many companies having been burnt before, it’s easy to follow the mantra, “if it ain’t broke, don’t fix it”. But CX is the customer battleground. So, IT leaders need the support of business stakeholders to make the necessary improvements through investments in new applications and technologies.

“Working with a partner that has a proven track record is a great way for businesses that are concerned about what could go wrong to embark upon this change with confidence and positively achieve the customer experience they aspire to.”

Survey methodology

Conducted by Coleman Parkers Research between March and May 2021, the survey is based on the responses of 1,420 IT decision-makers across manufacturing, digital native, financial services, retail, government/public sector, and healthcare sectors in the Americas, Europe, Asia and the Middle East.

About Rackspace Technology:

Rackspace Technology is a leading end-to-end multicloud technology services company. We can design, build and operate our customers’ cloud environments across all major technology platforms, irrespective of technology stack or deployment model. We partner with our customers at every stage of their cloud journey, enabling them to modernize applications, build new products and adopt innovative technologies.