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India's digital transformation may peak in a decade, but cybersecurity preparedness lags, reveals Zoho survey

Chennai, 22 January, 2025Zoho the global technology company headquartered in Chennai, today unveiled its global survey titled Workplace Digital Transformation Survey 2025 According to the survey, India's workplace digital transformation is likely to peak in 10 years, but Zoho Workplace, the company's enterprise email and collaboration suite, also revealed that India's digital workplace transformation maturity (score of 64.6%) overtakes that of developed nations and also the global average (62.3%). Around 5000 employees were surveyed globally to examine the factors affecting their daily lives and the rate of digital adoption in their organisations.

The workplace digital transformation (DX) maturity model was built based on workplace indicators (digital tools and processes) and employee performance indicators (productivity, collaboration, and security preparedness). This model divided progress into four levels: Informal operations (minimal or ad-hoc usage of tools and processes), Standardisation (standard of tools and workflows), Structured operations (advanced integration across departments), and Optimisation (continuous improvement of tools and processes). Besides these indicators, the survey also measured employee experience, impact of change on the workplace, and adoption of digital tools (AI, analytics, etc).

"In India, government institutions and large enterprises must reassess their digital transformation strategies to address cybersecurity gaps and enhance collaboration. Leadership across sectors should champion initiatives that ease the steep learning curves associated with advanced digital tools. Startups and enterprises embracing the digital transformation wave must adopt a forward-thinking approach, ensuring innovations like integrated suites, AI-powered analytics tools, and secure communication platforms are equipped to tackle both present and future challenges," said Rakeeb Rafeek, Market Strategy Lead, Zoho Workplace.

India's stage of digital workplace transformation

According to the survey, India, which has the highest DX maturity score, could potentially reach an advanced maturity level in digital workplace transformation in the coming decade. The findings show that organisations in developing nations like India are at a critical juncture in their DX journey, moving from legacy systems to modern tools and often leapfrogging intermediate phases. As per the survey, 71% of employees based in India are at advanced maturity levels (level 3 and above), higher than the global average of 61%. This is owing to the fact that Indian professionals are actively involved in DX, resulting in higher perceived maturity scores as employees directly witness improvements in workflows and efficiency during this transition.

Key drivers in workplace processes driving DX maturity

India’s digital transformation is driven by key workplace processes that enhance operations and collaboration, even as workplaces grapple with areas for improvement. Over half (56%) of Indian workers use integrated, automated calendars, though 10% still rely on personal apps or don't use calendars. Project tracking is common, with 38% of managers using project boards and 41% holding regular team meetings. However, task delegation remains largely manual for 37% of respondents, and only 14% use automated systems, especially in larger enterprises and healthcare. Communication tool usage varies, with 63% of organisations using email for announcements and 68% using chat for team updates. Social intranet tools have low adoption at just 16%, despite offering richer, interactive communication. The government and education sectors lag in automation, with less than 20% using automated ticketing systems.

State of security preparedness

In India, only 37% of organisations offer cybersecurity training to their employees. The country lags behind both APAC (44%) and the global rate (41%), indicating a gap in employee readiness to counter cyber threats. In terms of reporting of security incidents, it stands at 25%, with only technology departments and larger teams (51+ members) showing strong adherence, underscoring the need to encourage prompt incident reporting across other demographics. The survey also found secure remote work guidelines are followed by only 33% of organisations in India, and among employees following remote or hybrid mode of work, it is less than 50%.

While 74% of Indian organisations have a way for employees to report suspicious emails within their email client, leaving 26% relying on manual judgment. Only 17% of Indian workplaces stated that they have advanced security alert systems for suspicious emails, with the government and development sectors leading in adoption at 36% and 39%, respectively. India leads in advanced authentication measures, with 63% of organisations adopting these tools, while the global average is 49%. Additionally, the survey revealed that 42% of Indian companies have implemented data protection protocols, twice the APAC average.

In terms of regulatory compliance, only 22% of Indian organisations claim their security protocols involve compliance with industry-specific regulations, close to the global average of 24%. 31% of Indian organisations have implemented physical security measures, surpassing the global average of 28%. India also leads in password management tools at 33% and role-based access at 39%, emphasising the importance of limiting access based on roles for better data security. The persistence of ad-hoc sharing behaviours signals the need for stricter policies and better education on secure sharing practices.

Adoption trends of Shadow applications

Shadow applications (tools used without official approval by an organisation's IT team) bring challenges such as security vulnerabilities, compliance risks, and oversight. In India, file sharing and storage (47%), communication (41%), and note-taking and documentation (28%) are the three top areas where employees are using shadow apps. Organisations must find a balance between empowering employees to use productivity-enhancing tools and implementing proper controls and security measures to mitigate risks. Addressing the widespread use of unapproved tools is crucial for maintaining security and compliance standards while maximising workplace efficiency.

India's stance on leveraging AI in the workplace

Each region has adopted AI in varying capacities. In India, automated content creation (44%), and communication (52%) are the major use-cases for employees. This reflects India's proactive use of AI to streamline creative processes and promote efficient, AI-driven collaboration. High adoption rates in workflow automation (39%), predictive analytics (33%), and AI powered chatbots show strong momentum in utilising AI for efficiency. There are opportunities to expand AI-powered search and increase adoption in resource and security management, where APAC currently excels.

Impact of Change Management on Employee Experience

India also leads globally in employee satisfaction at 49%, indicating a clear correlation between maturity levels and positive employee experiences. In fact, respondents whose organisations had fully overhauled their workplace tools (like email, chat etc.) achieved higher maturity scores (average 66.7) and reported a more positive work experience (64%), aided by vendor support that facilitated a smooth transition from fragmented systems. However, change in specialised workplace tools (like ERP systems or project management) leads to a lower overall positive work experience. Organisations that make minimal or no updates to their digital tools tend to have lower maturity scores (~61) and a mixed work experience (45% positive), indicating that the lack of change may limit exposure to modern tools and hinder long-term transformation.

The way forward for reaching peak workplace DX maturity

Currently, 27.5% of respondents remain at Level 2 maturity, while 65% are at Level 3. Moving from Level 2 to Level 3 requires significant tool and process enhancements, such as integrating suites and workflows. This transformation can take 2-3 years, and up to 5 years for advanced Level 3. The cost for this would be Rs. 40,000 - Rs. 80,000 per employee annually, as per the study. Advancing from Level 3 to Level 4, however, demands the adoption of advanced platforms and comprehensive process optimisation. This transition can take over 10 years and cost Rs. 80,000 - Rs. 1,70,000 per employee annually, the study states.

For the complete findings of the study, click here. The detailed methodology can be read here.

Zoho Privacy Pledge

Zoho respects user privacy and does not have an ad-revenue model in any part of its business, including its free products. The company owns and operates its data centers, ensuring complete oversight of customer data, privacy, and security. More than 100 million users around the world, across hundreds of thousands of companies, rely on Zoho everyday to run their businesses, including Zoho itself. For more information, please visit: https://www.zoho.com/privacy-commitment.html

About Zoho

With 55+ apps in nearly every major business category, Zoho Corporation is one of the world's most prolific technology companies. Headquartered in Chennai, India, Zoho is privately held and profitable with more than 15,000 employees. For more information, please visit: www.zoho.com.

Media Contacts

Nanya Srivastava
nanya.s@zohocorp.com

Ojasvni Singh
ojasvni.sa@zohocorp.com