Digital shift to spark growth in ICT spending
July 26, 2021
ICT spending in the Asia/Pacific region to grow at 7.1% in 2021 driven by digital shift across industries, IDC reports.
The all-pervasive digital shift by Asia/Pacific enterprises to attain digital resiliency has helped ICT spending grow by over 7.1% to reach $950 billion (€805 billion) in 2021 and is expected to reach $1.1 trillion (€0.93 trillion) by 2025, according to the latest release of Worldwide ICT Spending Guide Industry and Company Size. Digital resiliency refers to the ability of an organisation to rapidly adapt to business disruptions by leveraging digital capabilities to restore business operations and capitalise on the changed conditions.
In anticipation of multiple waves of infections, enterprises revisited and upgraded their business plan. This helped industries evolve and look towards better offerings, thereby improving customer satisfaction, which will continue post-pandemic. Multiple sectors have already begun their infrastructure as business models changed throughout the year, pushing a relatively large spend in innovating current offerings and undergoing the digital journey.
“Organisations are bracing themselves to have a smooth transition post-pandemic. As vaccinations gather pace in the region, organisations across industries will focus their efforts to have a hybrid business model,” said Mario Allen Clement, Senior Market Analyst, IT Spending Guide, IDC Asia/Pacific. “Innovative products and customer satisfaction will be key to continued operations,” he added.
According to IDC, Professional Services expect the highest year-on-year growth within the Distribution and Services sector right through the forecast period. The digital journey across the Professional Services sector has remote working as one of its priorities and has continuously invested in upgrading for faster operations. Personal and Consumer Services follow with second-highest growth compared to all other verticals as countries have started to allow travellers with utmost caution. Therefore, leisure and business travel activities show the highest growth in 2021 after a complete slowdown.
“Financial, Infrastructure, Transportation and Media sectors realized improved operational efficiency, customer satisfaction, and innovation in services post their digital transformation investment,” said Vinay Gupta, Research Director, IT Spending Guide, IDC Asia/Pacific. “This, in turn, de-risked their business from further disruptions,” he added.
Very Large Businesses (1000+ employees) continue to hold the largest market throughout the forecast, it contributes to almost half of the ICT spending with expected growth of 7% year-on-year for 2021. As per IDC’s 2021 Future Enterprise Resilience and Spending Survey (Wave 5), these enterprises will shift or add close to 45% of their technology budget to either address COVID-triggered business change or make the organisation more competitive.
Categories : Around the Industry
Tags : Digitalisation ICT IDC Spending Guide
