IDC Announces Key Technology Investment Trends for the Future Enterprise
Today, International Data Corporation (IDC) announced its IT outlook for 2021 along with top trends and guidance for enterprises as they prepare for The Next Normal.
Recent IDC (News - Alert) data shows that actual market performance has been stronger than suggested by survey and market indicators, especially in the U.S., due largely to cloud and remote work support. Service provider investments to meet demand for cloud and digital services are stable compared to other sectors and remote work/learning has driven stronger PC volume and a greater focus on security for the year. "Overall information and communications technology (ICT) spending is expected to have a 5% compound annual growth rate (CAGR) through 2024. In terms of total IT spending, we are seeing a more shallow V-shaped drop this year. Total IT spending will drop to about 1% growth this year, but this is far stronger than the 3% decline that was expected earlier in the year," said IDC President Crawford Del Prete.
In a recent IDC survey, 42% of technology decision makers indicated that their organizations plan to invest in technology to close the digital transformation gap. "The pandemic created a business necessity for increasing technology investment and accelerating digital transformation timetables," said Meredith Whalen, Chief Research Officer at IDC. "What we are learning is that many of these initiatives that started as ways to mitigate the economic impact of COVID-19 have become permanent roadmap requirements for Future Enterprise success in the digital economy."
IDC's outlook for the Future Enterprise identifies three overarching initiatives that directly link technology investment to digital transformation efforts - creating digital parity across the workforce, designing for new customer demands, and accelerating automation initiatives.
Creating Digital Parity
Before the pandemic, organizations, on average, had only 14% of their employees working from home. That percentage has increased dramatically - to 45% - and many organizations anticipate that work-from-home employees will remain a large proportion of the workforce going forward. Supporting hybrid workforces and ensuring that remote and work-from-home employees have the same sets of connectivity and productivity tools as their in-office counterparts will be essential to long-term success.
Almost half (47.6%) of all U.S. consumers are "very concerned" about their personal health as it relates to the COVID-19 virus, according to IDC's recent U.S. consumer survey. This concern for safety has spurred many businesses to create new contactless consumer experiences, including curbside pickup. Enterprises will also invest in design and user interface requirements for contactless process automation with an emphasis on voice-based experiences and self-service options through mobile apps.
Accelerating Automation Initiatives
Enterprises will increasingly adopt automated IT operations practices to support the greater scale required for digitally driven enterprises. Robotic process automation (RPA), robotics, and artificial intelligence (AI) technologies will play a more important role in labor automation while a continued focus on autonomous operations will drive investment in Digital Engineering organizations and digital operations technologies.
COVID-19's Impact on Industries
The COVID-19 pandemic has created unique situations for specific industries, including healthcare, hospitality, retail, and small and medium businesses (SMBs), requiring them to rethink the way they use technology to engage with customers.
To learn more about IDC's predictions for the Future Enterprise, please see the report, The Future Enterprise: The Next Normal Priorities Driving Technology Investments (IDC #US46911020). For more insight into how digital transformation has been a critical differentiator for enterprise crisis recovery, please read Meredith Whalen's recent blog post at https://bit.ly/36nWuJH.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter (News - Alert) at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.