Mumbai., Feb 15 Digital-first enterprises are expected to shift half of all tech and services spending to as-a-service and outcomes-centric models by 2024, according to the IDC FutureScape Report 2022.
Market intelligence firm International Data Corporation (IDC) India on Tuesday launched its annual series of reports titled IDC FutureScape Report 2022 in a virtual media briefing.
IDC highlights the top ICT predictions around several key emerging segments such as IT, cloud, artificial intelligence and automation, the future of digital infrastructure, future of trust, future of intelligence, data & content technologies, and corporate banking.
Vasant Rao, Managing Director, IDC India said, “Every company is a technology company and businesses are recognising the significance of cutting-edge digital technologies in the aftermath of the pandemic. They are investing heavily in building a fully integrated digital infrastructure and progressing towards a digital economy.”
“We expect to see enterprises implement several digital first initiatives to help them deal with headwinds and crosswinds in 2022 and beyond,” said Rao.
According to the IDC FutureScape: Worldwide IT Industry 2022 predictions, digital first enterprises will focus on enabling empathetic customer experiences and resilient operating models by shifting tech spend to as-a-service and outcomes-centric models.
In terms of cloud, by 2024, 30 per cent of organisations in India using cloud services are expected to establish a dedicated FinOps function to automate policy-driven observability and optimisation of cloud resources to maximise value.
Enterprises are also expected to be bullish on artificial intelligence and machine learning. By 2026, 60 per cent of enterprises in India will combine human expertise with AI, ML, NLP, and pattern recognition to augment foresight across the organisation, making workers 20 per cent more productive and effective, the report said.
In terms of the overall digital infrastructure, organisations will focus on sustainability. 40 per cent of Indian digital infrastructure RFPs will require vendors to prove the progress on ESG/ sustainability initiatives with data by 2024, as CIOs rely on infrastructure vendors to help meet ESG goals.
Cybersecurity is an important aspect of digitisation. Talking about the future of security, the report said that by 2024, 35 per cent organisations will allocate half of their security budget to cross-technology ecosystems/ platforms “designed for rapid consumption and unified security capabilities to drive agile innovation.”
Corporate banking
The report also shed light on the impact of the upcoming launch of the Central Bank Digital Currency (CBDC) as announced by the Centre in the Union Budget 2022-23.
“With CBDC rollouts gaining momentum, by 2025, more than 15 per cent of tier-1 corporate banks will offer their clients integrated solutions to unlock liquidity from both traditional and digital assets,” the report said.
Separately, Indian banks are projected to spend more than $1 billion by 2025 on public cloud initiatives, indicating the importance of cloud in driving technology transformation. Further, IT spending for treasury-as-a-service capabilities is projected to cross $66 million by 2025 at a compound annual growth rate (CAGR) of 20 per cent, “reiterating the resolve of the banks in India to get closer to their business clients,” it said.
Sharath Srinivasamurthy, Research Director, Enterprise Solutions & ICT Practices, IDC India said, “A digital-first strategy nowadays entails more than just identifying and implementing any new technology or business models. Rather, it is an organisational shift and a culture change that brings customer centricity, hybrid work, unified security, remote operations, and a shared business value.”
“Enterprises would rely more on as-a-service technology options when it comes to enabling an intelligent, empowered, and well-connected workforce with focused investments in IT infrastructures,” Srinivasamurthy added.
Every year, IDC publishes its top forecasts in its annual FutureScape reports with insights on the evolving ICT sector in the medium and long term.
“These forecasts enable technology leaders and decision makers to chart out their business strategies and realign their objectives for the next 1-5 years,” it said.
Published on
February 15, 2022
