Global spend on digital transformation to top $6.8 trillion in next two years
Some 65% of the world’s GDP set to be digitalised by 2022, propelled by the pandemic, according to International Data Corporation (IDC).
The research predicts that direct digital transformation investments will total $6.8 trillion (€5.62 trillion) between 2020 and 2023. Also, that 65% of the world’s GDP set to be digitalised by 2022, propelled by the pandemic.
IDC’s Global President, Crawford Del Prete, commented, “The demand for IT has changed dramatically as a result of COVID-19, with almost every segment of the market being impacted by massive changes in customer behaviour.
“We predict that direct investment in digital transformation will grow at a healthy compound annual growth rate (CAGR) of 15.5% globally between 2020 and 2023, while non-DX [digital transformation] ICT investment will contract at a CAGR of -1.4% over the same period.
“And as more and more companies become fully transformed from the less than 20% of enterprises today, relative GDP from digitalized products and services will expand exponentially.”
Jyoti Lalchandani, IDC’s Group VP said, “As the focus on operational efficiency intensified, tech-enabled automation became a key priority, reshaping organizations’ processes and operations.
“Most economists predict a return to economic growth in 2021 as a vaccine becomes widely available. As this recovery begins, the focus of end-user organisations will revert to business growth and new investment. But the technology investments made during the pandemic will ensure that the ‘Next Normal’ that emerges will be very different from the pre-COVID economy.
“Indeed, by 2022, 70% of all organisations globally will have accelerated their use of digital technologies, transforming existing business processes to drive customer engagement, employee productivity, and business resiliency.” Presumably those goals will remain regardless of whether most people return to work at least some of the time or not.