Digital-first initiatives will drive unprecedented changes in the way IT is procured and deployed by organisations in Asia.
IDC predicts by 2024, digital-first enterprises enable empathetic customer experiences and resilient operating models by shifting 60 per cent of all tech and services spending to as-a-service and outcomes-centric models. That is one of the predictions IDC unveiled in its recent report IDC FutureScape: Worldwide IT Industry 2022 Predictions — APEJ Implications.
A recent IDC survey indicated that Asian enterprises have experienced the most gains in operational efficiencies, customer satisfaction, and reduced business risk due to investments in digital transformation in 2020. 76 per cent also indicated having a formal strategy for business resiliency and how it’s beginning to accelerate and integrate digitalization. These results indicate the level of commitment Asian organizations have towards building a future-ready enterprise.
“Digital-first initiatives will drive unprecedented changes in the way IT is procured and deployed by organisations in Asia,” says Avneesh Saxena, Group Vice President of Domain research at IDC Asia/Pacific. “As enterprises realize the impact of digital transformation on their business, they will focus on technology performance indicators that are more business-outcome centric.”
IDC’s Future of IT Industry top 10 predictions provide guidance for business leaders on how best to innovate software moving forward.
Digital-First Drivers: By 2024, digital-first enterprises will enable empathetic customer experiences and resilient operating models by shifting 60 per cent of all tech and services spending to as-a-service and outcomes-centric models.
New Cloud Fundamentals: By 2023, 40 per cent of A2000 will reset cloud selection processes to focus on business outcomes rather than IT requirements, valuing access to providers’ portfolios from device to edge and from data to the ecosystem.
Governance Readiness: By 2023, 70 per cent of enterprises will use AI-assisted, cloud-linked governance services to manage, optimize, and secure dispersed resources/data, but 70 per cent don’t achieve full value due to IT skills mismatches.
Portfolio Inflation: By 2022, 40 per cent of large enterprises’ IT budgets will be redistributed due to adoption of integrated as-a-Service bundles in areas of security, cloud platforms, virtual workspace, and connectivity.
Systematic Industry Change: By 2026, leaders in industries facing mandated transitions in 2030s will triple annual tech investments dedicated to product/operations infrastructure but require 400 per cent gains in IT operational efficiency.
Augmentation trumps Automation: By 2024, 60 per cent of A2000 enterprises will gain twice as much, in terms of meaningful returns, on technology investments that augment employee/customer activities compared to ones that automate individual processes.
Digital Sovereignty: By 2025, regional divergences in data privacy, security, and placement/use/disclosure mandates will force 80 per cent of enterprises to restructure their data control processes built on an autonomic foundation.
Back to Physical: By 2023, 40 per cent of A2000 will shift half of their new technology hardware/connectivity spending to modernize and conceptualize in-person experiences for customers and employees in their own locations.
Digital Sustainability: By 2025, 50 per cent of A2000 will have Digital Sustainability teams tasked with assessing, certifying, and coordinating the use of business and IT sustainability data and analytic platforms offered by ICT providers.
Data Controls: By 2025, public enterprises’ valuations will be based as much on confidence in data controls for proper/effective use of data as in financial controls, focusing increased spending on data-centric solutions.
