Digitalization Will Drive IT Spending – Revenues to Touch $6.8 Trillion by 2023

Digitalization Will Drive IT Spending – Revenues to Touch _6.8 Trillion by 2023

Global IT spending is set to touch $6.8 trillion by 2023 as a result of increasing digitalization, reported IDC.

The global pandemic has been influencing many external forces that are driving digital change. In its essence, the economy is on its way to widespread digital transformation. This is going nearly $6.8 trillion of IT spending by 2023, which will digitalize 65% of the global GDP – claims a recent IDC study.

Even though there are pandemic-induced disruptions, the marketplace will see digitization across the IT industry practices from 2020 to 2023. Today, most products and services are centered on an online delivery model – they require digital augmentation in order to remain competitive.

The study revealed that by the end of 2021, almost 80% of enterprises globally would implement a mechanism in place. This is expected to shift into cloud-centric applications as well as infrastructure – this is twice faster as the pre-pandemic era.

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By 2023, the reaction to transformed operations and workforce practices amid the pandemic is likely to be a dominant accelerator. This is valid for about 80% of the edge-driven investments and business plan changes in most businesses – in various industries worldwide.

In fact, for the same duration, half of the organizations’ hybrid workforce and business automation initiatives will be delayed or fail. This is due to an insufficient investment to made IT/Sec/DevOps teams with the right skills and tools. And to address this shortage of developers and data analysts, CEOs are turning to flexible talent.

As noted in the report – “The need to deliver of infrastructure, application and data resources to edge locations will spur adoption of new, cloud-centric edge and network solutions that enable faster responses to current business needs while serving as a foundation for boosting long-term digital resilience.”

This move will enable businesses to scale – ensuring enhanced business solutions and operational flexibility. By 2023, nearly 75% of the G2000 firms would be providing technical equivalence to their workforce. This is primarily for hybrid companies by design, instead of those by circumstance, enabling them to function in real-time.

The study indicated that till 2023, coping with technical debt mounted up in these unprecedented times would shadow nearly 70% of the CIOs. This will lead to inertial drag upon IT agility, financial stress, and obligatory march migrations into the cloud.

As a result, the ‘smart’ CIOs have started looking for opportunities to create digital platforms next-generation. Basically, successful organizations are most likely to sell internally developed industry-specific solutions – leveraging in-depth domain knowledge to introduce new, profitable revenue streams.

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Certainly, it will help in modernizing and rationalizing applications and infrastructure. At the same time, it is facilitating in delivering flexible capabilities to design and provide new services, products, and experiences – to both customers as well as to workers.

Hence, reevaluating service, technology, and service provider connections are vital for long-term success where the current IT ecosystem is going through a significant transition.

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