IDC’s digital transformation predictions that will impact ICT spending

Direct digital transformation investments will accelerate to a CAGR of 16.5 percent in 2022-2024, up from a 15.4 percent CAGR in 2019-2024, becoming 55 percent of all information and communications technology (ICT) investments by the end of 2024, IDC said.
IT spendingDirect digital transformation (DX) investment growth rates are accelerating, up to a 16.5 percent CAGR for 2022-2024. This is an increase of one full percentage point from the 15.5 percent CAGR for the 2020-2023 timeframe. 2022-2024 investment levels are expected to be $6.3 trillion and 55 percent of all ICT investment by the end of 2024.

“For the first time ever, the majority of enterprise organizations, at 53 percent, have an enterprise-wide digital transformation strategy, a 42 percent increase from just two years ago,” said Shawn Fitzgerald, research director, Worldwide Digital Transformation Strategies at IDC.

Predictions

Prediction 1: Direct digital transformation investments accelerate to a 16.5 percent CAGR in 2022-2024, up from a 15.4 percent CAGR in 2019-2024, becoming 55 percent of all ICT investment by the end of 2024.

Prediction 2: Organizations accelerated their investments in digital. This means that in 2022 more than half the global economy is based on or influenced by digital.

Prediction 3: By 2023, 90 percent of organizations worldwide will prioritize investments in digital tools to augment physical spaces and assets with digital experiences.

Prediction 4: By 2025, 60 percent of organizations will capitalize on disruption with an enterprise- and ecosystem-wide approach to automation, leveraging model-based enterprise concepts, centers of excellence (COEs), and low-code/no-code platforms.

Prediction 5: By 2026, 54 percent of CIOs drive business transformation, empowering digitally resilient organizations via strategic technology roadmaps and re-platforming to enable an agile, data-driven, collaborative workforce.

Prediction 6: Leveraging low-code/no-code tool and data utilization capability, the majority of employees at 60 percent of enterprises will lead transformation and embody digital resiliency at their roles by 2024.

Prediction 7: By 2022, 55 percent of organizations will have expanded resiliency plans to future-proof their business, improving profitability, innovation rates, and cost efficiencies by more than 20 percent compared to their peers.

Prediction 8: By 2023, 1 in 2 companies will generate more than 40 percent of their revenues from digital products and services, as compared to 1 in 3 in 2020.

Prediction 9: By 2025, companies with cross-functional leadership, a digital dream team, enjoy faster rates of innovation, higher market share gains, and greater operational efficiencies than their contemporaries.

Prediction 10: Decarbonization initiatives are a key goal of digital transformations; fewer than 10 percent of organizations say they are not applicable or not implementing objectives to reduce carbon by the end of 2023.

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