Spending on digital technology by organizations will grow at eight times the economy in 2023 globally, establishing a foundation for organizations to drive operational excellence, competitive differentiation, and long-term growth, the International Data Corporation (IDC) forecasted.
In its latest report, IDC notes that Digital transformation investments in the Middle East, Türkiye, and Africa (META) are set to more than double across the 2021–2026 period.
The global technology research, consulting, and events firm said that digital transformation spending in the region will accelerate at a compound yearly growth rate (CAGR) of 16 per cent over the five years, topping $74 billion in 2026 and accounting for 43.2 per cent of all ICT investments made that year.
IDC’s Group Vice President and Regional Managing Director, META, Jyoti Lalchandani, said: “For many organisations, the digital and tech investments they made during the pandemic to build resilience could be put to test in 2023 across key business dimensions such as customer experience, operations, and financial management, among others. The implementation of further digitalisation in critical areas and a more rapid shift to a ‘digital business’ approach will be key to separating the thrivers from the survivors.
“No matter what the economy throws at us over the coming 12 months, organisations must not lose sight of their digital aspirations. The focus should be on enabling clear and measurable outcomes, and digital spending needs to transition from building to scale. Indeed, IDC predicts that by 2027, at least 30 per cent of the C-suite’s focus will be on scaling innovation and operating a truly digital business. Automation will sit at the heart of this process, helping to reduce the cost of IT operations, address labor shortages, and increase the velocity of innovation.”