Universities struggle with digitisation due to outdated legacy tech, fragmented ecosystems, widening equity gap
New Tata Consultancy Services (TCS) research finds that while universities are investing heavily in digital transformation and student engagement, most are yet to mature digitally. The study highlights a critical gap between ambition and execution in a sector that is rapidly moving toward intelligent and experience led education models.
It draws insights from 200 senior leaders, including chancellors, CIOs, provosts, and deans, from universities across the United States, United Kingdom, and Australia, shedding light on challenges stemming from outdated legacy technology, fragmented digital ecosystems, and a widening equity gap, which are impacting modernisation efforts.
Key highlights from the study:
88% of universities view technology as supportive or a core enabler of innovation and adaptability, signalling that digital is no longer optional.
Alongside academics, research, and digital transformation, student experience is now a top strategic focus.
Institutions allocate 29% of IT budgets to digital student experience and 19% to digital transformation, with AI and machine learning, student engagement platforms, and cybersecurity topping future investment priorities.
Despite financial constraints, low alumni engagement, and regulatory compliance challenges, nearly 80% of education leaders remain optimistic about future institutional growth.
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Ankur Mathur, VP and Head, Education Unit, TCS, says: “The higher education sector is built on knowledge, innovation, and the promise of transformation. Today, that foundation is being redefined by digital technologies, where AI, analytics, and cloud platforms enable institutions to deliver personalised experiences, improve operational agility, and make data driven decisions at scale. We see this as a defining moment to help universities become intelligent, resilient, and future ready, empowering them to thrive in an era of experience led learning and continuous digital evolution.”
A paradigm shift is essential, TCS argues. According to its study, nearly 80% of education leaders are optimistic about growth, yet 57% describe their digital proficiency and 55% their digital student experience as evolving. By building integrated strategies and fostering cultural agility, universities can accelerate digital transformative experiences, the company concludes.
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