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Over 50% Enterprises Believe 5G Will Help Customer Acquisition and Generate New Revenue Streams: Infosys Research
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-  90 percent of enterprises  are actively investigating business cases, defining use cases with ecosystem partners or defining service portfolios using 5G technology

-  Unlike 2G, 3G and 4G, businesses are looking for Network Service Providers and System Integrators to play a crucial role in accelerating the 5G adoption journey

- 59 percent of respondents mentioned security as the biggest barrier for 5G adoption

BENGALURU, India, Oct. 22, 2019 /PRNewswire/ --  Infosys Knowledge Institute  (IKI), the global thought leadership and research arm of Infosys, today unveiled its market research titled, 'State of 5G – The Road Ahead'. The research was  aimed at gathering insights around the current state of 5G adoption and identifying current and future initiatives that can serve as a guide for business and technology leaders across enterprises in their 5G digital transformation journey.

 

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For this research, Infosys surveyed 850 senior executives representing firms from 12 industries, with annual revenues over US $1 billion across US, Europe, UK, Australia and New Zealand. The study gathered empirical evidence to show how mass machine communication is expected to be the most transformed application with 5G and why data security emerges as the most critical barrier to its adoption.

Key findings of the survey:

  • A staggering 90 percent of the respondents are either actively investigating 5G business cases or defining various use cases and service portfolios with ecosystem partners.
  • Nearly 60 percent of respondents mentioned cost and effectiveness as the primary criteria for use case adoption, while 57 percent of surveyed enterprises are looking at 5G for new revenue streams.
  • Over 50 percent of enterprises are looking for 5G use cases that can help them disrupt the market or drive their brand forward
  • Data security (59 percent), finding the right talent (57 percent), and device readiness (57 percent) were identified as key barriers in 5G adoption.
    • Industry wise, Energy and Utilities call out Integration while Manufacturing mentions virtualized 5G core deployment as key challenges
    • Maintenance of the new technology (47 percent) and defining a roadmap for AI and ML technology advancements (33 percent) emerged as key challenges post implementation
  • Nearly 50 percent enterprises firmly believe that system integrators play a vital role in 5G deployment.
  • 50 percent respondents cited that mass machine communication is expected to undergo a major transformation, followed by ultra-reliable and low latency services (48 percent) and enhanced cellular broadband (43 percent).
  • State of 5G across industries:
    • Consumer Retail and Logistics (CRL) and Energy and Utilities (E&U) industries are leaders in 5G strategy with experiments around In-Store Experience and Smart Grids respectively. There is also traction in interactive experiences around media delivery, smart spaces, and remote healthcare.
    • Telecom industry is driving more use case experimentation (57 percent) that can help them disrupt the market.
    • Supply side industries have migrated beyond the business case stage, focusing more on prototyping. On the other hand, industries on the demand side are driven by the cautious nature of users while contemplating business cases.
  • While standards organizations are seen as the preferred partners in 5G evolution among nearly 50 percent respondents, understanding of 5G and seamless transitioning capability were called out as the key partner selection criteria.

Nitesh Bansal, Senior Vice President and Global Head, Engineering Services,  Infosys said, "5G holds significant transformation potential for both network providers and enterprises that will consume it. For network providers there are significant opportunities for network virtualization, AI and automation, while considerably lowering associated costs and enhancing delivery of network-based services. For enterprises, on the other hand it unlocks significant value with the addition of use cases that were not possible without low latency and high bandwidth network coverage.  Through our research, 'State of 5G – The Road Ahead', we are looking to present a comprehensive view of the adoption and barriers in implementing 5G. The research also highlights relevant use cases that will serve as a ready reckoner for businesses looking to explore new opportunities in the 5G space."

For a full copy of the report, please visit: https://www.infosys.com/engineering-services/insights/Pages/state-of-5G-road-ahead.aspx    

Methodology

Infosys conducted independent interviews and web surveys, the report of which presents a holistic view of 5G adoption. A total of 850 senior executives – including 30 percent C-suite executives - and over 1000 employees comprising 53 percent business users and 47 percent IT users representing firms from numerous industries, with annual revenues over US $1 billion across the US, Europe, UK, Australia and New Zealand (ANZ), participated in this survey. The respondents were grouped into six industry clusters: FSI (Financial Services & Insurance), HLS (Healthcare, Lifesciences, Government and Agriculture), MFG (Industrial Manufacturing, Automotive and Hi-Tech), CMT (Telecom and Media & Entertainment), E&U (Energy & Utilities), CRL (Retail, Consumer Goods, Services and Logistics).

About Infosys

Infosys is a global leader in next-generation digital services and consulting. We enable clients in 46 countries to navigate their digital transformation. With over three decades of experience in managing the systems and workings of global enterprises, we expertly steer our clients through their digital journey. We do it by enabling the enterprise with an AI-powered core that helps prioritize the execution of change. We also empower the business with agile digital at scale to deliver unprecedented levels of performance and customer delight. Our always-on learning agenda drives their continuous improvement through building and transferring digital skills, expertise, and ideas from our innovation ecosystem.

Visit  www.infosys.com  to see how Infosys (NYSE: INFY) can help your enterprise navigate your next.

Safe Harbor

Certain statements mentioned in this presentation concerning our future growth prospects are forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2019. These filings are available at www.sec.gov  Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company unless it is required by law.

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