India’s Top PSUs 2022

28 Challenges faced by CPSUs in digital transformation The digital journey of Indian CPSUs hasn’t been smooth. The major challenges are as below: Integration with legacy system: Integration with legacy systems is one of the top challenges faced by CPSUs. If legacy systems do not get integrated with new platforms, data remains isolated and incompatible with other data processing systems, making it less productive for the company. To overcome this challenge, CPSUs have focused on the choice of digital technologies for adoption, strengthening of processes and developing proper strategy for digital transformation. Several CPSUs also considered using professional consultants for initial handholding. Further, recently the government has also realised the potential of inter-departmental connects. Hence, instead of creating systems in silos, the focus has shifted to make them interoperable with each other in order to share and exchange the information. Inadequacy in skills: Lack of digital skills is one of the factors challenging the smooth digital transition of CPSUs. With the digital transformation of organisations, technology skills are no longer centred with IT function; rather, they are also used extensively across organisational functions. In order to overcome this challenge, some CPSUs have undertaken re-skilling/up-skilling initiatives for their staff as well as have planned various engagement initiatives like ‘Digital Yatra’ to involve all employees in the digital transformation process. Lack of long-term IT strategy: Lack of long-term IT strategy is one of the key challenges in smooth digital transition of CPSUs. Several CPSUs have tried to overcome this challenge by setting out requirements/ functional requirements in clear terms. Sufficient budget for IT spends: Digital transformation requires substantial investment. However, in recent years, the rising awareness about changing trends in the management of CPSUs and the government’s strong push for digital transformation has helped resolve this issue to a certain extent. Dun & Bradstreet