IDC predictions on digital transformation in Asia Pacific

IDC has revealed its predictions on digital transformation in Asia Pacific. DX technology spending is expected to grow 2x faster than overall IT.
CIOs and digital transformation
As of July 2021, 28 percent of organizations in Asia Pacific in the most progressive stages of digital transformation maturity, up from 18 percent pre-COVID in 2019.

“The world is firmly anchored in a digital-first economy,” says Sandra Ng , Group Vice President for ICT Practice, IDC Asia Pacific.

“More than 50 percent of organizations will see an increased spend in technologies as a result of collaborations with ecosystem partners. This co-innovation and sharing of data, insights, and applications will lead to new products and services addressing the digital-first customer’s changing needs and habits.”

#1: By 2023, 1 in 3 companies will generate more than 30 percent of their revenues from digital products and services, as compared to 1 in 5 in 2020.

#2: By 2024, 55 percent of successful digitally innovative products will be built by teams that include people with creative, critical thinking, analysis, and automation skills as well as software engineers.

#3: By 2023, 40 percent organizations will allocate half of their security budget to cross-technology ecosystems/platforms designed for rapid consumption and unified security capabilities to drive agile innovation.

#4: By 2026, on average 30 percent of A2000 company revenue is derived from industry ecosystem shared data, applications, & operations initiatives with partners, industry entities, and business networks.

#5: From 2021 to 2027, the number of new physical assets and processes that are modeled as digital twins will increase from 5 percent to 60 percent resulting in operational performance optimization.

#6: 30 percent of large enterprises will see 25 percent improvement in information usage by 2026 due to investments in intelligent knowledge networks that turn structured/unstructured data into findable and actionable knowledge.

#7: By 2026, 30 percent of organizations will use forms of behavioral economics and AI/ML-driven insights to nudge employees’ actions leading to a 60 percent increase in desired outcomes.

#8: By 2025, a 6X explosion in high dependency workloads leads to 65 percent of A2000 firms using consistent architectural governance frameworks to ensure compliance reporting and audit of their infrastructure.

#9: By 2022, more than 50 percent of organizations will prioritize connectivity resiliency to ensure business continuity, resulting in uninterrupted digital engagement to customer, employees and partners.

#10: By 2024, digital-first enterprises enable empathetic customer experiences and resilient operating models by shifting 60 percent of all tech and services spending to as-a-service and outcomes-centric models.