Over the last two years, companies have kicked the process of moving information onto the cloud into high gear. In the end, this makes
It’s a procedure that they consider absolutely vital for staying up to date and competitive, and we can find the proof in a metric that might seem easy to overlook: how much they’re willing to pay the employees in charge of the process.
A recent survey by the executive recruiting firm Robert Half shows that salaries for chief information officers (CIOs), who are often in charge of digital transformations, will rise to an average of $260,250 next year.
This news also comes on the heels of a report by Gartner that global enterprise IT spending is expected to hit $4.2 trillion by the end of the year. That’s up 8.6% from 2020.
And I’ve identified a leader in the field that just nearly doubled its quarterly earnings, a metric which share price often follows.
Let me show you why I still see so much upside ahead…
The concept of a “digital transformation” can encompass a lot. From moving systems to the cloud to using digital twins, and even adopting AI to analyze business data – all of these aspects are part of transforming a business for the digital age.
But making just one of these doesn’t make a business digital. To really undergo a “digital transformation” means integrating technology into every aspect of a business.
At every step, the company should be using digital tools to help employees work smarter and make better decisions, to automate boring, repetitive tasks, and analyze data.
Only once it does all of these things has a company reaped the full rewards of going digital, and can say that it has digitally transformed.
This kind of bottom-up transformation of how a company does business isn’t easy. That’s why CIOs are being rewarded with such high salaries.
But no matter how much you pay them, even the smartest CIO can’t do it all by themselves. They’ll need help from a company like the one I want to tell you about today to really bring their business into the digital age.
Even Alphabet Inc., the parent company of Google, whose name is almost synonymous with the internet itself, is paying today’s company for help in digitally transforming its own business.
That company is Globant S.A. (GLOB), a one-stop-shop for any business looking to move their operations to the cloud, adopt machine learning or AI, and optimize their business using digital technology.
Apart from Alphabet, Globant also counts giants like The Walt Disney Co. (DIS) and Southwest Airlines Co. (LUV) among its clients.
The AI Advantage
Globant evaluates each one of its clients on where they could integrate digital technology into their operations, and how much better they could run after doing so.
This top-to-bottom evaluation might include setting up digital twins of a client’s factories to allow it to better monitor and predict which robots will need maintenance and when.
Or maybe Globant will show a client how creating an AI to collect the company’s data and provide business projections and advice could improve operations and save money.
In fact, Globant’s CEO, Martin Migoya, has put AI at the forefront of how Globant helps companies digitally transform.
And it’s paid off big time. When Covid first hit, Globant was getting up to 10 cancellations a day, as companies were cutting their contracts with the firm to save money.
But once it became clear that, amid supply chain chaos, lockdowns, and the move to online retail, companies had to become digital or go under, that changed.
Now, Globant is doing better than ever. It’s no wonder. After all, with offices and stores closing and millions of people moving to work from home, companies had to figure out how to turn office-based procedures into online ones.
That’s exactly the kind of digital transformation that Globant helps companies make.
The same is true for a better and smarter web presence, bolstered by AI analytics of sales, marketing, and supply patterns, that became crucial over the last year.
And of course, the ongoing shipping apocalypse has required ever-more inventive ways of finding new production and logistics partners, and predicting bottlenecks.
It’s all made Globant hugely successful. For the June quarter, the company reported a 96% earnings increase.
Wall Street analysts now expect the firm to close the year with an impressive earnings growth of 54%.
And even if we decide to be conservative and cut Globant’s growth rate in half, we’d see Globant’s earnings double again in just 2.6 years.
In other words, your tech portfolio will gain for years to come from the digital transformation sweeping through the US economy.
Cheers and good investing,
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Source: Strategic Tech Investor