Construction Companies Invest Less Than 5% on Tech

Over half of India’s construction companies including those involved in rail, road and housing projects, currently only spend 1-3% of their annual turnover on technologies, while one-third spend 3-5% according to a survey by International Data Corporation, a global market intelligence firm. According to IDC, construction companies must work on creating a digital transformation technology roadmap. In India, 35% are planning to establish this roadmap within the next 12 months. However, 24% still have no plans to do so. According to the report, only 3% of companies are well on their way to succeeding on their digital transformation journeys while over 70% of construction companies in India are only starting their journeys. “The companies that had digital technologies in place, did not lose a single hour due to covid induced lockdown. As companies will prefer work from home in future, it is important to have digital tools to successfully do that,” said Sunil MK, the head of architecture, engineering and construction at Autodesk India, which offers software services in areas such as architecture, engineering and construction. While majority of India’s construction companies are at the early stages of digitalization, the industry anticipates acceleration in digital transformation.