Increased spending on digital technology lays a foundation for resilient digital businesses to respond flexibly to storms of disruption
SINGAPORE, November 3, 2022 – International Data Corporation (IDC) today announced its top technology forecasts for 2023 and beyond. The forecasts were presented at an in-person event at Andaz Hotel Singapore hosted by Sandra Ng, IDC’s GVP and General Manager for Asia/Pacific Research.
Over the next few years, Asia Pacific* companies will need to weather storms of disruption caused by talent gaps, cybersecurity intensity, supply chain dynamics, COVID restrictions, inflation and the risk of recession to achieve business goals and reduce costs. increase profits, improve operational efficiencies, increase sales and improve customer experience.
Aside from driving digital-first strategies and leveraging technology to compete and implement digital innovation programs that deliver tangible results at scale and create quantifiable business value, C-Suites must transform their organizations into resilient digital businesses. IDC predicts that by 2024, 30% of organizations will have a business continuity crisis management strategy in place that includes continuous intelligence and enables agile response to future economic shocks and disruptions.
“CIOs must actively leverage their organization’s resiliency capabilities for their competitive advantage. They should use this to not only adapt and survive, but more importantly, to thrive and achieve financial, supply chain, ecosystem and sustainability differentiation,” says Ng.
To lay a foundation for operational excellence, competitive differentiation, and long-term growth, IDC predicts that corporate digital technology spending will grow 3.5x in 2023 as the economy PC and infrastructure upgrades, contract workforce reductions and delaying new projects by a year will not be effective. Instead, the recessionary playbook for 2023 will be to adopt as-a-service delivery and operations models, use contract staff to address labor shortages, and focus on high-impact digital business projects.
By 2026, 40% of the total revenue of the top 2000 Asian companies will be generated from digital products, services and experiences. For Asia Pacific organizations to achieve these, digital-first CIOs must redefine their enterprise value in the digital business era by making financial, ecosystem and ESG/sustainability impacts. They must implement digital business initiatives that improve bottom line, engage in digital ecosystems to accelerate revenue growth, and invest in digital technologies to increase their ability to meet their ESG requirements.
Three key tech-to-competition agendas that business and technology leaders need to focus on in the near-term are:
#1: Platform First – By 2025, 60% of infrastructure, security, data and network offerings will require cloud-based control platforms that enable extensive automation and promise significant reductions in ongoing operational costs.
#2: Trust first – To meet the increasing volatility of market and customer demands, 50% of CIOs will use operating model design by 2026% to optimize value stream, agile architecture and risk management.
#3: People first – By 2026, companies that have not effectively addressed the talent and digital capability gap in their organization will limit revenue growth opportunities by 20%.
In the longer term, business and technology leaders should turn their attention to the unfolding new technological world order and the critical challenges it presents:
- tech talent. The talent gap will increasingly limit tech ROI.
- Cloud sovereignty. Digital sovereignty has far-reaching implications and the need for sovereign clouds will increase.
- sustainability. The direct impact of technology on sustainability will increase.
- machine vision. Metaverse as an example in this broad category will be a game changer.
- dates first. Data-first will dominate across all industries and economies.
Each year, IDC publishes its top forecasts in its IDC FutureScape reports to provide a crystal ball view of what’s in store for the rapidly changing IT industry. These predictions have been used to shape the strategies and business goals of technology leaders and executives over the next 1-5 years.
To learn more about the upcoming IDC FutureScape reports, please visit bit.ly/3SVVRLg. You can also watch an on-demand replay of the IDC 2023 Predictions presentation, which will be available as part of 40+ FutureScape webinars covering the CIO Agenda, Digital Business, Artificial Intelligence, Cloud, Sustainable Strategies and technologies and a range of industries -specific and Future of X topics. To register for one of these webinars, please visit idc.com/events/futurescape.
For sales inquiries regarding an IDC FutureScape document, please contact your IDC Account Manager or Sheryl Fuertez at [email protected] For media inquiries, please contact Michael de la Cruz at [email protected] or Miguel Carreon [email protected]
*Asia/Pacific including Japan
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About IDC FutureScape
IDC FutureScape is used to shape IT strategy and planning for the enterprise by providing a fundamental framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC’s FutureScape consists of a set of decision prerequisites designed to identify a set of upcoming issues that CIOs and senior technology professionals face within the typical three-year business planning cycle.
International Data Corporation (IDC) is the world’s leading provider of market intelligence, consulting services and events for the information technology, telecommunications and consumer technology markets. With more than 1,300 analysts worldwide, IDC provides global, regional and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insights help IT professionals, executives and the investment community make fact-based technology decisions and achieve their key business goals. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading technical media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC blog for industry news and insights.
For media inquiries please contact:
Michael de la Cruz
IDC Asia Pacific
Marketing Specialist, Corporate Communications
IDC Asia Pacific