While the global business ecosystem continues to be shaped by the disruptive forces unleashed by the COVID-19 pandemic, one key trend remains constant – the steady march toward a digital-first future.
International Data Corporation (IDC) recently released IDC FutureScape: Worldwide Digital Transformation 2022 Predictions. Organizations increased their digital investments in response to the pandemic. As most products and services use a digital delivery model or need digital augmentation to remain competitive, this means that by 2022, more than half of the global economy will be influenced by digital.
Organizations will need to prioritize their investments in digital technologies to enhance physical assets and spaces in order to succeed in a digital-first environment. As a result, by 2024, digital transformation will account for more than half of all information and communications technology (ICT) spending.
The IDC research study focuses on the economic, social, and technological crosswinds that businesses will face in the next three to five years as they pursue their digital transformation goals. In the digital-first economy, an organization’s ability to respond to these crosswinds and accelerate digital transformation will ultimately determine its fate.
Here’s a closer look at the top seven IT industry predictions:
Customers and operations will benefit from a digital-first approach
By 2024, digital-first businesses will have shifted 70% of all tech and services investment to as-a-service and outcomes-centric models, enabling empathetic customer experiences and resilient operational models. Diverse consumer engagement and data-driven operations models will necessitate these investments.
Cloud fundamentals have changed
By 2023, 40% of the G2000 will refocus cloud selection processes to prioritize business outcomes above IT requirements, valuing access to portfolios of service providers from data to ecosystem and device to edge. The most essential IT operational challenges for IT companies will be managing, optimizing, and safeguarding diverse cloud resources and data sets.
For IT teams, governance becomes a top priority
By 2023, 80% of businesses will utilize AI-assisted, cloud-connected governance services to manage, optimize, and safeguard dispersed data and resources, but 70% will miss out on the full benefits due to IT skills gaps. Almost every IT company sees huge roadblocks in their way of implementing governance-focused automation across their organization.
Also Read: Making the Most of Digital Transformation
The delivery of as-a-service becomes more common
By 2022, 40% of the IT budgets of large organizations will be reallocated due to adoption of integrated as-a-Service bundles in areas of cloud platforms, security, connectivity and virtual workspace. While the advantages of agility, rapid development, and alignment with actual business use are well understood, IT teams will need to keep an eye on portfolio inflation on a regular basis.
Transitions in systemic technology are on the way
Industry leaders facing forced or systemic transformations in the coming decade will triple IT spending for new environments by 2026, but will struggle to achieve the 6x increases in IT operational efficiency that are required. IT businesses across a variety of industries should begin planning now for how various systemic shifts may affect their technology goals and priorities.
Data stewardship presents opportunities and challenges
By 2025, regional differences in data security, privacy, and placement/ disclosure/use laws will force 80 percent of businesses to modify their data governance operations. Digital sovereignty will be a critical spur for new investments in data/resource control planes and targeted IT automation efforts that minimize trust risks in areas like cybersecurity while also laying the groundwork for new employee experiences, customer experiences, and remote operations efforts for successful organizations.
Data controls will be scrutinized
By 2025, valuations of public organizations will be dependent on data controls for effective data use as much as financial controls, resulting in increasing spending on data-centric solutions. IT executives should select technology and service providers based on their capacity to address the most pressing issues.