Higher education has a “long way to go” before digital transformation is fully realised, according to university leaders around the world.
A new report warns that institutions are at a “crossroads” – investing more than ever on digital transformation but needing to make significantly more progress to keep up with ever-increasing student expectations.
Produced by Tata Consultancy Services (TCS), the research found that many institutions struggle to integrate new technologies into existing systems.
In a survey of 200 senior leaders at universities in the UK, US and Australia, 88 per cent see technology as supportive or a core enabler of innovation and adaptability, and nearly 80 per cent are optimistic about growth.
But 57 per cent said their institution’s digital proficiency was still “evolving”, while only 35 per cent described their university as having advanced or future-focused digital maturity.
“This suggests there’s still a long way to go before digital transformation is fully realized across the sector,” says the report.
“The continued dominance of email and the prioritization of AI and machine learning indicate a contrast between the inertia mindset of legacy systems and the appetite for next-generation solutions.”
It adds that “outdated systems” make it difficult to scale for hybrid learning or deliver personalised experiences.
Cited by 90 per cent of institutions, traditional channels such as emails are the most common form of communication with students. And although the use of mobile apps and social media is “strong but still evolving”, emerging tools such as virtual assistants are less well used.
TCS says the sector is “balancing legacy communication methods with the growing demand” for more streamlined and personalised student experiences. And it warns that older infrastructure is expensive to maintain and difficult to integrate with modern platforms, creating inefficiencies.
The report says that the adoption of digital technologies varies widely across services. Although registration and financial services are widely digitised, areas such as student health and well-being, housing and career services have much lower levels of digital uptake.
And fragmented digital ecosystems were cited as the biggest challenge to a great student experience, resulting in complex administrative processes.
“Ambition contrasts with execution,” the report concludes. “Most universities are still in the ‘evolving’ stage of digital maturity, with fragmented ecosystems and siloed initiatives slowing progress.”
But the survey shows that budget constraints were by far the biggest barriers to the adoption of new technology for leaders – far greater than the issues with legacy systems.
Perhaps unsurprisingly, just half of respondents said their institution was “thriving” financially – and a quarter were finding it challenging.
Ankur Mathur, vice-president and head of the Education Unit at TCS, said this is a “defining moment” to help universities become intelligent, resilient, and future-ready.
“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 personalized experiences, improve operational agility, and make data-driven decisions at scale.”
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