Dive Brief:
- Deloitte is launching a new practice focused on enterprise software and product development to help business customers engineer technology capabilities faster, the company announced Tuesday.
- Deloitte Engineering, which runs on cloud-native tech stacks, will assist customers with data engineering, AI/ML, app development, engineering for software platforms and operating models and retaining tech talent. Customers will also have access to more than 140 third-party providers.
- “We are seeing an unprecedented shift in the market as organizations embrace more cloud native principles and modern engineering approaches,” Ranjit Bawa, U.S. chief strategy and technology officer at Deloitte LLP, said in the announcement.
Dive Insight:
As businesses look to optimize workloads in the cloud, tech leaders are also tasked with creating new value. The skilled IT talent that businesses need to reach goals is still hard to come by even as large tech organizations adjust workforce strategies.
Despite the hurdles, enterprises have big plans for software and product development as advancements in AI bring new capabilities. More than 4 in 5 software buyers say AI functionality is a determining factor in software purchases, according to a G2 survey of 1,700 global software buyers.
It’s an area businesses are willing to spend money on. Nearly 3 in 5 AI buyers expect increased spending in 2024, 10 percentage points higher than the overall sentiment, G2 found.
Generative AI providers, like Anthropic and OpenAI, have focused internally on updating their models to better support coding and development functionalities. But roadblocks to enterprise adoption persist. Tech leaders are under pressure to keep up with advancing technology and ensure systems are secure while dealing with budgetary constraints and skills gaps.
Consulting firms, like Deloitte, are readying their systems for the expected growth in generative AI adoption to be in a position where they can help customers. Deloitte partnered with Google Cloud in May to use its capabilities to build industry-tailored solutions for companies after launching a generative AI focused practice in April.
The firm has also acquired four organizations over the past three years to build up its capabilities, including cloud native software engineering and product development firm HashedIn Technologies in 2021 and product engineering services company Optimal Design in May of this year.
