The 2024 Connectivity Report: Key Trends Shaping APAC’s Digital Landscape

The latest data from IT leaders around the world reveals how AI, automation and APIs are driving business value and innovation, and where organisations still have work to do on their digital transformation efforts.

Digital transformation isn’t just a trend. It’s a core shift to the business landscape, with IT leaders refining their strategies, headcounts and budgets to cater to growing customer expectations and project demands. The 2024 Connectivity Benchmark Report sheds light on the state of digital transformation worldwide, with the latest trends in AI, integration, automation and API management. So how do businesses in India and the APAC region measure up in the evolving digital landscape?

IT leaders are optimistic about AI

The report reveals that 88% of organisations in APAC are already using AI, and adoption is continuing to grow. IT leaders in the region foresee an 89% increase in their usage of Large Language Models (LLMs) over the next three years, exceeding the 69% increase expected globally. Moreover, 86% are confident that AI will increase developer productivity at their organisations in that timeframe.

This optimism is a good thing, considering they’re simultaneously reporting a 39% increase in IT requests. AI will play an essential role in sustaining productivity under these demands, helping IT teams to manage growing workloads and expectations both efficiently and cost-effectively.

Organisations need to get their data ready for AI

Despite the optimistic outlook, 69% of APAC IT leaders say their organisation is ill-equipped to harmonise data systems to fully leverage AI, with 82% pointing the finger at data silos as hindering digital transformation efforts. While this figure is lower than the 81% global average, organisations in India and across APAC still have a way to go to break down silos and better integrate data across the business. 

Integration hurdles are blamed by IT leaders for stalling digital transformation for 82% of APAC organisations. Kurt Anderson, Managing Director and API Transformation Leader at Deloitte Consulting LLP explains, “A lack of integration is the top barrier to adopting emerging technologies, especially AI. And as demand grows for seamless, personalised customer experiences, the interoperability of systems is crucial for harnessing the full potential of data, AI, and automation. That’s why integration should be the cornerstone of every IT leader’s digital transformation efforts in 2024.”

The potential of AI is limited only by the data that organisations can connect it to, and the outcomes they can drive from it. The report shows that IT leaders across APAC are increasingly aware of these integration and automation challenges, and underscores the need for a robust data strategy, with a focus on data currency, reuse and access.

IT teams are under pressure, but workflow automation can help

With 98% of APAC IT teams struggling to integrate efficiently, workflow automation emerges as a solution. Robotic Process Automation can drive efficiency and reduce the workload on IT teams. As automation is demanded across businesses, IT often plays a gatekeeper role, but workflow automation permits other teams to self-serve. The global investment in RPA is now 31%, up significantly from 13% in 2021, as IT teams realise its potential.

Singapore Institute of Management (SIM) underwent its digital transformation with Salesforce and MuleSoft, integrating multiple back-end systems to streamline the end-to-end experience for its learners and administrators. Learners can now access courses with a single sign-on and automated processes encourage self-service and more efficient case management.  

APIs become a strategic lever for growth

APIs are now a staple in the digital ecosystem, with 99% of organisations using them to streamline data access and fuel growth. In APAC APIs and API-related offerings contribute to 33% of all revenue. Furthermore, APIs have contributed to increased revenue for 41% of APAC respondents and cut operational costs for 27%.

M1, Singapore’s most dynamic communications company, found its legacy on-premise API gateway was too labour-intensive and slowed down the delivery of new offerings. Supported by MuleSoft Professional Services, it migrated to a more agile solution in just 9 months and is now completing 13% more projects a year through API reuse, while saving 15 man-days per project. 

“I’m really excited about the scalability we have with MuleSoft. In a fast-paced industry, we now have the confidence that we can stay ahead of the game with a future-proofed environment and delight our customers as we grow our business,” says Chiam Chee Kong, Deputy Head of Software Engineering & Architecture at M1.

With outlets in Thailand and Malaysia, popular retail brand Lotus’s chose Salesforce and MuleSoft to unify its systems and data so it can provide more personalised and streamlined customer experiences. MuleSoft’s API reuse and prebuilt assets helped it complete its digital transformation in just 14 months – half the time it allotted. 
“We knew that with MuleSoft as our API gateway and integration layer we would be able to be more agile and transform more quickly,” says Wiphak Trakanrungsi, Head of Technology Software Development and Innovation at Lotus’s.

Digital transformation is the competitive advantage

An enterprise API strategy that facilitates data integration across applications will empower leaders to accelerate innovation and operationalise AI to drive business value and growth for the future. Through revenue generation, operational cost reduction and the promotion of self-service, integration, automation and APIs will help Indian businesses maintain their competitive edge in 2024 and beyond.

Read the full 2024 Connectivity Benchmark Report for a comprehensive understanding of the digital transformation landscape in India, APAC and beyond.